Shimao Services Holdings Ltd. is seeking to raise up to 10.12 billion Hong Kong dollars (US$1.31 billion) in a spinoff and initial public offering in Hong Kong.

The Shanghai-based property management services company, a unit of property developer Shimao Group Holdings Ltd., plans to sell 588.2 million shares at HK$14.80-HK$17.20 each, it said in a prospectus filed Tuesday.

Shimao Group will indirectly control about 66.5% of the total issued share capital of Shimao Services, according to the prospectus. At the higher end of the offer range, Shimao Services said it would have a market capitalization of about HK$40.47 billion.

Morgan Stanley and CICC International are joint sponsors for the initial public offering, with Goldman Sachs and HSBC also acting as advisers. Shares are expected to begin trading Oct. 30.

In the six months ended June, Shimao Services's total revenue rose 85% from a year earlier to 1.56 billion yuan ($233.5 million).

The company is tapping the Hong Kong market amid heightened activity in the financial hub in recent months, with the city attracting Chinese companies involved in businesses ranging from pharmaceuticals to property to tobacco.

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(END) Dow Jones Newswires

10-19-20 2125ET