Forte Land plans share offering in Shanghai
Shanghai Forte Land, a Hong Kong-listed property developer in the mainland's financial hub, plans to list shares on the Shanghai Stock Exchange to raise funds for development projects.
The company yesterday said it would apply to the China Securities Regulatory Commission for approval to issue up to 126.4 million A shares at one yuan each or 632 million A shares at 20 fen each.
As A shares listed on the Shanghai exchange are of a nominal value of one yuan each generally, Forte will apply to the regulator for the issue of A shares of a nominal 20 fen.
Forte may consolidate every five issued H shares and its mainland domestic shares into one share, if the relevant authorities insist that only shares of a nominal value of one yuan each can be listed, according to the company,
Forte's registered share capital is 505.86 million yuan, comprising 1.47 billion domestic shares and 1.06 billion H shares of 20 fen each.
The developer assumed that if it did not allot and issue any further shares before the effective date, the registered share capital of Forte would remain at 505.86 million yuan, comprising 295 million consolidated domestic shares of one yuan each and 211 million consolidated H shares of one yuan each.
The share offering and the proposed share consolidation requires shareholders' approval on April 10.
Forte, which bought a number of mainland sites last year, has partnered ING Real Estate in a mixed-use development project in Shanghai.
Forte bought equity in Beijing Hehua for the joint development of the JW Marriott Centre project in Beijing in December last year and is expected to invest 500 million yuan in the project.
Its H shares closed up 7.47 per cent at HK$3.31 yesterday.
