Companies take advantage of surging stocks

Beijing Enterprises Holdings' controlling shareholder and lubricant maker Daqing Petroleum and Chemical plan to raise up to $900 million in share placements, taking advantage of a surging stock market which rallied to an almost six-year high yesterday.

Beijing Enterprises Investments is selling 50 million shares at $16.53 each, the lowest end of the indicative range, according to market sources.

The price represents a 5 per cent discount to the company's last traded price of $17.40. After the sale, Beijing Enterprises will hold 324 million shares, or 52 per cent of the company, down from 60 per cent. The next largest shareholder is Deutsche Bank with 15 per cent.

Shares in Beijing Enterprises, which sells consumer products, have risen 32 per cent this year.

Swiss-investment bank UBS is arranging the sale.

Proceeds of the share sale would go towards servicing debt and acquiring assets, the term sheet said.