Everbright aims to raise 1.24b yuan
Everbright Securities plans to raise 1.24 billion yuan by selling new shares to 11 strategic investors, according to its second-largest shareholder, Hong Kong-listed financial group China Everbright.
Meanwhile, its sister company, China Everbright International said last year's underlying profit more than doubled to HK$135 million due to strong growth of its environmental protection business.
Shanghai-based Everbright Securities plans to sell 453 million new shares at 2.75 yuan each. Part of the proceeds will be used to increase its registered capital to 2.89 billion yuan from 2.44 billion yuan, China Everbright said yesterday.
China Everbright's stake in the brokerage will be diluted to 39.31 per cent from 46.6 per cent after the share placement. China Everbright (Group), parent of both firms, will see its stake in the brokerage fall to 40.92 per cent from 48.5 per cent.
Sources said earlier China Everbright did not take part in the private placement as the regulator refused to exempt it from a rule that caps foreign ownership in a local securities firm. Its stake may be diluted to 33 per cent at the end of this year or early next year when Everbright Securities launches its initial public offering in Shanghai.
Meanwhile, Everbright Group's environmental protection unit Everbright International said underlying profit surged 109 per cent to HK$135 million last year. Turnover increased 78 per cent to HK$235 million.
Net profit more than tripled to HK$409 million from HK$107 million yuan a year earlier, mainly boosted by a HK$310 million disposal gain from the sale of its 15 per cent stake in Mawan Power.
Revenue from its environmental protection business jumped 163 per cent to HK$146 million.
It declared a final dividend of 0.6 HK cent and a special dividend of 0.4 HK cent.