Cash-strapped Leading Spirit (Holdings) is considering a $300 million placement by subsidiary, Leading Spirit Conrowa Electrics (LS Conrowa), as part of an ongoing restructuring of its finances. The Securities and Futures Commission suspended trading in LS Conrowa on November 21 last year after it discovered only 4.25 per cent of the issued share capital was held by the public while 19.08 per cent was held by a group of connected traders. It is understood the placement would increase the company's free float and help alleviate Leading Spirit's $1.2 billion debt. Brokers said Leading Spirit planned to sell about 700 million LS Conrowa shares - or about 10 per cent of its 75 per cent stake - at 40 cents each to retail investors. The commission alleged LS Conrowa shares were concentrated in the hands of certain connected traders, which caused the share price to rise from its $1 issue price last June to $1.64 before the suspension. This effectively valued the share at $9.84 after taking into account a five-for-one bonus issue on September 22 last year. The commission's probe into LS Conrowa shares continues. Meanwhile, Leading Spirit's creditor banks said the company would soon conclude a share placement to a mainland investor. The placement would see the company issuing new shares and chairman Wong Shi-ling selling part of his stake to the unnamed investor for about $150 million, they said.