Pacific Basin taps market for HK$2.1b

PUBLISHED : Friday, 09 May, 2008, 12:00am
UPDATED : Friday, 09 May, 2008, 12:00am

Dry-bulk shipper Pacific Basin Shipping is to raise HK$2.14 billion in its second fund-raising exercise in six months.

The company has reached an agreement to place 158.598 million shares at HK$13.52 each, a discount of 7.02 per cent to yesterday's close of HK$14.54.

The placement represents about 10 per cent of the existing issued share capital of the company and 9.1 per cent of the enlarged capital.

The firm raised HK$3 billion in December from a convertible bond.

'I was surprised by the new share offering because the firm is cash-rich. Including the convertible bond issue, the company has at least HK$5 billion cash on hand,' said a fund manager.