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Shenzhen property firm taps market

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Christine Chan

Shenzhen Property and Resources Development (Group) said it would raise $18.87 million from its one-for-10 rights issue on B shares.

The firm said the $6.29-per-share rights issue would require the creation of three million shares.

The rights price was at a 10.1 per cent discount on the stock's B-share close of $7 on Friday.

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Agreement with South China Brokerage (China) was struck on Monday for the underwriting of the three million B shares.

The property and development company's planned rights issue came in the face of the current market doldrums, with some firms having either cancelled or delayed their rights-issue proposals.

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The firm said the proposed rights issue for both A and B shares was passed during the company's shareholders' meeting on April 28.

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