Developer China Vanke Co Ltd’s property services have launched Hong Kong’s largest initial public offering (IPO) in 2022, aiming to raise as much as $783.5 million in what will be a key test of investor appetite.

Its subsidiary Onewo Space-Tech Service set a price range of HK$47.1 to HK$52.7 per share in the public offering of 116.74 million shares, representing 10% of the company’s share capital, according to the deal’s term sheet. The price range values Onewo at $7 billion to $7.8 billion.

Vanke, China’s second-largest property developer by sales, is listed in Shenzhen and Hong Kong and owns a 62.9% stake in Onewo, making it its biggest client, regulatory filings show.

The deal could reveal investor interest in buying services and management sub-sectors linked to China’s cash-strapped real estate market, which has weathered one crisis over the past year.

While a string of Chinese developers defaulted on their offshore debt at the time, Vanke weathered the crisis better than its rivals, partly because it had less debt relative to its equity and some state-owned shares.

Once Onewo’s shares are listed on the Hong Kong Stock Exchange, its performance could also affect the prospects of other property services companies seeking to raise funds through IPOs.

The Hang Seng Property Services and Management Index has fallen 44.3% this year, reflecting continued weakness in the property sector. Some service companies scramble to borrow or raise capital from their parent companies. Investors’ views on the move were unclear.

In August, property management company Jinke Smart Service Group (9666. HK) said it would provide up to $222.3 million in loans to its parent company Jinke Real Estate, and its stock price fell 37% in a single day.

On August 31, Yu Liang, chairman of the parent company, said that the purpose of Vanke’s IPO was not to increase Vanke’s liquidity. Yu added that subsidies account for only 1% to 2% of Vanke’s assets and profits.

Volatility in global financial markets has caused Onewo’s IPO to be scaled back from its initial ambition to raise as much as $2 billion, Reuters reported. Onewo said it plans to use the IPO funds to expand its existing business, upgrade its software and take majority stakes in three to five “value-added” service providers in the industry.

The IPO was attended by six cornerstone investors, who collectively subscribed for up to $280 million worth of shares, the filings show. These investors include China Mixed-Owned Reform Fund, China Chengtong Investment and UBS Asset Management.

The final IPO price will be set on September 22, and public shares trading will begin on September 29. The deal also boosted the Hong Kong exchange. Data from Refinitiv shows that amid Sino-US tensions and a tight regulatory environment in China, companies have raised just $2.42 billion in Hong Kong IPOs in 2022, up from $23.76 billion in the same period of 2021.

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The Onewo deal would be the largest IPO in Hong Kong in 2022, surpassing Huitongda Networks Ltd (9878. HK), which raised $297 million in February. The two biggest equity deals in Hong Kong this year — the $2.1 billion China Travel Service Duty-Free and the $1.7 billion Tianqi Lithium — were secondary listings. Both companies are listed in mainland China.