SINGAPORE - Shares of CapitaMalls Asia opened 8.5 percent higher on Wednesday, boosted by strong demand from investors keen on gaining exposure to China's fast-growing consumer market.

At 0101 GMT, CapitaMalls was traded at S$2.28 compared with its initial public offering price of S$2.12 a share. It opened at S$2.30.

The IPO of CapitaLand's malls unit was 1.7 times oversubscribed, the company said late on Tuesday.

CapitaMalls is one of Asia's largest shopping mall operators with 86 properties in the region, including 50 in China.

The firm also manages several property funds, including Singapore-listed CapitaMall Trust and CapitaRetail China Trust.

CapitaLand, Southeast Asia's biggest developer, sold about one-third of its shopping mall unit, raising S$2.8 billion ($2.02 billion) in Singapore's biggest IPO since SingTel listed in 1993.

CapitaLand, which is 40 percent held by Singapore state investor Temasek , plans to use the funds raised to seek opportunities in Vietnam and expand its Ascott serviced residences business.

The firm may also pay a special dividend.