New World Development Co., the Hong Kong builder controlled by billionaire Cheng Yu-tung, started gauging demand for an initial public offering of its local hotels, two people with knowledge of the matter said.
NW Hotel Investments is seeking about $700 million in the IPO and plans to start trading on July 9, the people said, asking not to be identified because the information is private. The trust, based in Hong Kong, plans to start taking orders for shares in the week of June 24, they said.
The initial portfolio of NW Hotel Investments includes the Renaissance Harbour View and Grand Hyatt in Wan Chai, and the Hyatt Regency in Tsim Sha Tsui, according to a filing to the Hong Kong stock exchange today. Cheng ranks No. 41 on the Bloomberg Billionaires Index of the world’s richest people with a fortune of $16.6 billion.
A spokeswoman for New World had no immediate comment on the NW Hotel IPO. Deutsche Bank AG, HSBC Holdings Plc, JPMorgan Chase & Co., BOC International Holdings Ltd. and Standard Chartered Plc are arranging the sale, the people said.
New World had planned to seek as much as $1 billion from the offering, two people with knowledge of the matter said in March. Langham Hospitality Investments Ltd., a trust backed by Great Eagle Holdings Ltd. hotels in Hong Kong, raised $549 million last month. The trust had fallen 12 percent since it started trading on May 30.