New | Evergrande prices share place in Hong Kong at HK$5.67
Mainland China property developer Evergrande Real Estate Group has priced its top-up share placement at HK$5.67, far below its initial guidance between HK$6.22 and HK$6.36 following volatile market conditions in the Hong Kong and mainland equity markets on Thursday.
In a statement with the Hong Kong Stock Exchange on Friday, its chairman Hu Ka Yan said the proceeds of HK$4.6 billion will be used to repay debts and for general working capital. The final pricing of the deal represents a 17.95 per cent of the discount of the closing price of HK$6.91 on May 27.
The shares, which is composed of existing shares offered by Hu, were sold to no more than six investors, the company said.
The launch of Evergrande’s fundraising exercise coincided with a 2.23 per cent drop in the Hang Seng Index - the biggest one-day decline since December last year - while mainland Chinese stocks had their biggest fall in four months.
The company will resume trading on Friday, after a one-day suspension.
Credit Suisse, CLSA, Haitong International and Jefferies are the managers for the top-up placement.
