China's Xinyuan Real Estate plans $300m IPO 

(MENAFN) Chinese real estate developer Xinyuan Real Estate Co. Ltd. announced that it is planning an initial public offering (IPO) of American Depositary Shares, Reuters reported.

The company plans to use proceeds from the IPO to acquire land use rights for future property development projects. Remaining proceeds will be used for working capital and other general corporate purposes.

According to a statement, Xinyuan could raise up to $299.5 million from the offering, but this figure was estimated solely to calculate the registration fee and may change.

Xinyuan focuses on residential real estate development in China's larger, more developed cities with above-average gross domestic product and population growth rates. The company's projects usually consist of multiple residential buildings that include high-rise apartment buildings combined with retail outlets, leisure and health facilities, kindergartens and schools. Xinyuan also provides property management services for its developments.

As of Sept. 30, the company completed 13 projects, with seven under construction and seven in planning stages.

For the nine months ended Sept. 30, Xinyuan's income nearly tripled to $36 million from $12.5 million in the year-ago period. At the same time, revenue more than doubled to $218.3 million from $99.7 million in the first nine months of 2006.