Guangdong based real estate mongul BiGuiYuan group will have its IPO in Hongkong and will be listed on SEHK on the 20th, April. This will make its biggest shareholder Miss YANG Hui Yan the richest lady in mainland China with 52.9Billion HK dollar replacing Ms. Zhang Yin's HK$ 47.4B.
The 2.4Bln shares IPO, which is estimated to be 15% of the whole equity, will collect over 12.9 Billion HK dollars, making it the biggest mainland real estate IPO in HK. According to reports, the biggest shareholder Ms. Yang Hui Yan's 59.5% share will be valued at 52.9 Billion, even without consideration of 10% to 40% price premium after the IPO. Zhang Yin's JiuLong Paper was closed at HK$15.94 per share, giving her a total 47.4 Billion.
Biguiyuan was established by its Chairman Yang Guo Qiang in the 1990's in Guangdong. He started as contractor and had kept a low profile. Biguiyuan is a typical family shareholding company, which means shareholders are either family members or early founders. In 2006's Chinese fortune list, 10 shareholders were listed and 6 among which were the Yang's. The Chairman Yang seldom exposes himself in public or interviews. His 1.46 million annual salary tops the board.
Two years ago, Yang's 23 year old daughter who graduated from Ohio state university joined her father's company and became private assistant to Yang Guo Qiang, who in the same year, transferred all his stocks to the daughter, in the high hope to "lay big burden on her shoulder" and to train his succeeder. In the following year, she was given more shares from other holders and accumulated 70% to become the biggest shareholder and a board member too.
Biguiyuan started in Shunde, Guangdong. Its main business is within pearl delta area, esp. Guangzhou. Since 1999, the group's annual sales volume has been above 2.5 Bilion.
Translated by Zhao Qi