Xinyuan Real Estate’s IPO Prices at $14

December 12, 2007

Shares of Xinyuan Real Estate Co., which develops real estate in China, will begin trading Wednesday after the company’s initial public offering priced at $14 per American Depositary Share, the midpoint of expectations.According to Securities and Exchange Commission filings, Xinyuan expected the IPO, which totals 17.5 million ADS, to price between $13 and $15 each. Each ADS represents 2 common shares.

Xinyuan is a Cayman Islands holding company that operates through a subsidiary in China.The company raised about $224.9 million in net proceeds from the IPO, after fees and expenses. Xinyuan plans to use the proceeds to acquire land-use rights for future development projects. Remaining proceeds will be used for working capital and other general corporate purposes.

Xinyuan focuses on residential real estate development in China’s larger, more developed cities with above-average gross domestic product and population growth. The company was founded in 1997 by Chairman and Chief Executive Yong Zhang, who previously worked at construction and property-development companies in China.

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