China's Dalian Wanda Commercial secures nod for $6bn Hong Kong float

China's fourth-richest man, Wang Jianlin, plans to raise as much as $6bn from a Hong Kong flotation of his real estate firm Dalian Wanda Commercial Properties.

The property developer plans to take investors' orders on 8 December, the Wall Street Journal reported.

Funds raised will be used to expand overseas, Reuters reported. Wang, who built his empire using cheap Chinese government land, proposes to take his property firm into the world's 10 largest cities over the next decade.

The Chinese billionaire, with a net worth of $13.2bn (£8.4bn, €10.6bn) according to Forbes, will remain controlling shareholder post the initial public offering (IPO).

Wang, a former member of the People's Liberation Army, also heads the Dalian Wanda Group, the realtor's parent, which wants to raise overseas sales to 20% by 2020, while boosting revenue to $100bn from $30bn.

Dalian Wanda Group runs Wanda Cinema Line, which on 28 November secured approvals to raise up to 2bn yuan ($325.2m) through a planned mainland flotation.

The group also runs Hong Kong-listed Wanda Hotel Development, formerly Wanda Commercial Properties Group. It also holds an 80% stake in US-based AMC Entertainment Holdings, America's second-largest theatre chain.

Fitch Ratings in November pointed to the so-called Wanda Cities, massive mixed-use projects, being a "cash drain" but said they were "positive to Wanda" in the longer term.

Fitch said: "There is a good potential for Wanda City projects to become famous tourist spots and this can enhance Wanda's brand image."

Dalian Wanda Commercial, the flagship company, operates 89 shopping malls and 48 hotels across China, according to a 16 September pre-listing filing.

Dalian Wanda Commercial, in its preliminary prospectus, said net profit for the six months to June dropped 47% to 4.97bn yuan, owing to a decline in the fair value gain of its properties.