Dalian Wanda may trim IPO size

Real estate developer Dalian Wanda Commercial Properties Co is likely to trim the size of its initial public offering in Hong Kong amid fresh concerns about rising debt levels and foundering sales for mainland developers.

The company, a unit of billionaire Wang Jianlin's Dalian Wanda Group Co, got the IPO green light from the Hong Kong stock exchange on Monday, market sources said. A Bloomberg report cited an unidentified source as saying Dalian Wanda is planning to raise $4 billion by offering 15 percent of its outstanding shares to the public. Earlier, the market had expected the size of the company's float to be about $10 billion.

The reduced listing plan shows that the Dalian Wanda management are unhappy with the low valuation of its shares, especially at a time when capital flows from Hong Kong to the United States markets is expected to surge after the end of the quantitative easing program.