Sino Land

Sino Land seeks HK$4.4b from market to buy mainland property

PUBLISHED : Tuesday, 25 September, 2007, 12:00am
UPDATED : Tuesday, 25 September, 2007, 12:00am

Sino Land, Hong Kong's fifth-largest developer by market value, tapped the market yesterday by selling as much as HK$4.44 billion worth of new shares through a top-up share placement after the close of trading, according to a source close to the offering.

The developer was selling 220 million new shares at HK$19.57 to HK$20.21 each, representing up to a 7.03 per cent discount to the stock's close of HK$21.05 yesterday.

Sino Land has been absent from the local equity market since a HK$1.2 billion share offering in 2001.

JP Morgan is the sole arranger in the latest deal. The proceeds will be used to buy land in the mainland.

'Investors placed orders aggressively as they are bullish on the mainland property market. The order book was fully covered in the first half hour,' said a source.

'Sino Land prefers seeking a syndication loan or project loan for property projects in Hong Kong while the fresh funds raised from the share sale will be used on mainland property projects mainly,' a corporate banker said.

Sino Land's underlying profit for the year to June fell 17.42 per cent to HK$3.9 billion as its revenue in the period came from sales at a mass residential project. Net profit including revaluation gains rose 4.1 per cent to HK$6.27 billion. Turnover dropped 9.5 per cent to HK$7.53 billion.

Meanwhile, Wasion Meters Group, the mainland's largest maker of electronic power meters, was seeking to raise up to HK$519 million through a share offering to fund new expansion in the mainland.

The company has hired Macquarie to help offer 112.68 million new shares at HK$4.42 to HK$4.60 each to fund managers. The offering represents 16 per cent of its total outstanding share capital.

Wasion will use some of the proceeds to build a production plant at the Scientific and Technology Park of Changsha City in Hunan province, and some to develop its overseas sales and distribution network.

Wasion plans to more than double production capacity by the end of next year as it steps up efforts to expand overseas sales.