[ET Net News Agency, 21 June 2018] Morgan Stanley cited SOHO China's (00410) Chairman
Pan Shiyi from a press conference yesterday revealing the latest developments for SOHO 3Q,
the shared office business.
SOHO aims to list SOHO 3Q in Hong Kong in 2019. SOHO 3Q is currently a subsidiary of
SOHO China. The research house believes SOHO 3Q will be spun-off and separately listed on
Hong Kong Exchange by way of introduction.
SOHO 3Q has expanded rapidly in tier 1 & 2 cities. It expects to grow the number of
seats to 50,000 by end of this year from currently 30,000.
Morgan said there is no publicly listed shared office company. But private equity
financing records (Urwork, and Wework, etc) show the average valuation is US$4k to 5k
per seat.
A rough calculation based on the average valuation indicates value of SOHO 3Q is
US$200-250mn, 8% to 10% of current market cap. Morgan maintained its "buy" call and HK$4.1
target porice on SOHO China. (KL)