Esprit Holdings chairman Michael Ying Lee-yuen is seeking to raise up to HK$6 billion by selling shares in the company just one week after his announcement to step down as head of the clothing retailer.
Mr Ying (right) is offering 85 million Esprit shares at an indicative price range of HK$69 to HK$70.50 each, a discount of 2.08 to 4.17 per cent to yesterday's closing price, according to a sale document sent to institutional investors.
'Mr Ying is expected to sell off his remaining stake in Esprit soon. It will be an overhang to the upside of the share price,' a fund manager said.
Shares of Esprit rose 1.34 per cent to close at a record HK$72 yesterday. The stock has gained 31 per cent this year. Esprit shares have benefited from the latest market rally which saw the Hang Seng Index hitting a six-year high yesterday.
Many other listed companies such as Li & Fung and Guangzhou R&F Properties also placed shares to capitalise on the gains.
The Esprit shares offered represent 7 per cent of the company's share capital, cutting Mr Ying's stake in the firm to about 9 per cent.