Longfor Properties Co., the biggest developer in the southwestern Chinese city of Chongqing, raised HK$7.07 billion ($1.26 billion) in a Hong Kong initial public offering, said two people familiar with the matter.

The developer sold 1 billion new shares, or a 20% stake, at HK$7.07 apiece, according to the people, who declined to be identified before an announcement.

Longfor, which counts Singapore’s Temasek Holdings Pte as one of its cornerstone investors, is selling shares in Hong Kong as a 4 trillion yuan ($812 billion) government stimulus package lifts home prices in China. Longfor said Nov 5 it plans to use 48% of the proceeds to acquire new projects and 47% to finance outstanding land costs of existing projects.

Temasek and Government of Singapore Investment Corp., manager of more than US$100 billion of the city-state’s foreign reserves, will each take US$50 million of the offer, according to Longfor’s prospectus. Hongkong Land Holdings, one of the biggest office landlords in the city’s central business district, will take US$37.5 million and Ping An Insurance (Group) Co. will take US$30 million, the prospectus said.

Billionaire investor George Soros bought HK$200 million worth of Longfor’s shares while China Investment Corp., the country’s sovereign wealth fund, also invested through the international offer, Reuters reported today, citing an unidentified source.

Citigroup Inc., Morgan Stanley and UBS AG are arranging the sale. Spokespeople at the banks declined to comment when contacted today.