A major shareholder in mobile-phone designer Sim Technology Group was selling up to $405.37 million worth of his stock at a discount of 4.08 to 6.93 per cent yesterday, taking advantage of a sharp rally in the firm's share price after its strong results for last year.
According to market sources, Wong Cho-tung, the president and chief executive of the company, was selling 115 million shares at a price of $3.42 to $3.525 each through his family-controlled company Info Dynasty.
Mr Wong, together with his family, holds a 75 per cent stake in Sim Technology. Sources said the aim of the placement was to broaden the investor base and that CLSA was the placing agent.
Shares in Sim Technology were suspended from trading yesterday, pending an announcement. The company's stock closed at $3.675 before the suspension.
Sim Technology jumped sharply after it announced an 86.8 per cent surge in last year's net profit to $290.66 million on March 16. The share price reached a record high of $3.70 on March 21, 117.64 per cent above stock's offer price of $1.70 in June last year.
Meanwhile, trading in refractory products maker China Rare Earth Holdings was also suspended yesterday pending an announcement concerning the placement of its shares.