Tack Fat raises $234m amid buoyant market
Garment maker Tack Fat Group International raised $234.32 million through a top-up share placement yesterday, taking advantage of the buoyant market sentiment and its high-flying share price.
According to sources, the company offered 227.5 million shares at $1.03 each, a 9.64 per cent discount to its closing price of $1.14 on Friday. BNP Paribas arranged the share sale.
Tack Fat has earmarked $100 million for capacity expansion in its factories in Cambodia while $50 million will be used for mainland retail expansion of fashion brand Mudd. The rest will be used as working capital.
Trading in shares of Tack Fat was suspended yesterday, pending the announcement. Its price has rocketed 96.21 per cent since October last year.
Meanwhile, media firm Vertex Communications & Technology Group has tapped the market for the second time in two weeks with the placement of $40.5 million of new shares.
Following the sale of US$4 million worth of convertible bonds on March 28, the group said yesterday the placement was the best way to raise funds in the present economic climate, even though it had no specific plans on how to spend the money.
Nevertheless, the fund-raising exercises will help build a war chest for plugging into Hong Kong's electricity supply services, which are dominated by CLP Holdings and Hongkong Electric Holdings.
Handled by Quam Securities, the placement involved the sale of 83.59 million new Vertex shares at 48.5 cents each, a 6.73 per cent discount to the last traded price on Thursday, before trading was suspended.
The stock rose 7.69 per cent yesterday to 56 cents after resuming trading.
The new shares, which represent 13.61 per cent of Vertex's enlarged issued share capital, were sold to at least six investors independent of the company and its directors.
One of them took 30 million shares or 4.88 per cent of the enlarged issued share capital, at a cost of $14.55 million.