New | Jiangnan to fund production line expansion with HK$620m placement
Jiangnan Group, a manufacturer of wires and cables used for power transmission, distribution systems and electrical equipment, announced Friday it would raise HK$620 million in a share placement to expand production lines.
Chairman Rui Fubin, his son Rui Yiping and his son-in-law Chu Hui currently control 60.34 per cent of the group.
In a filing with the Hong Kong stock exchange, Jiangnan said it would issue up to 318 million new shares, which represent 9.36 per cent of the enlarged capital and will dilute the Rui family’s stake to 54.69 per cent.
“The directors have considered various ways of raising funds and consider that the placing and the subscription represent a good opportunity to raise capital for the company while broadening the shareholder base,” Jiangnan said in the statement.
The price is set at HK$1.95 per share, a discount of about 10 per cent to Thursday’s closing price of HK$2.17. The placement is expected to be completed on September 16.
CIMB and Macquarie are the placement agents.