Developer's move part of capital-raising effort by mainland property firms to build up their reserves for expansion Agile Property Holdings and its controlling shareholder are selling up to HK$3.2 billion worth of shares, just two months after the Zhongshan-based developer raised US$400 million from a bond sale. Agile offered 466.9 million shares at HK$6.67 to HK$6.85 each or 5 per cent to 7.5 per cent discount to its last trading price, fund managers who saw the document said. Sixty per cent of the deal is new shares sold by the firm, while 40 per cent are existing shares offered by its controlling shareholder Top Coast Investment Management, whose stake in the company will drop to 58 per cent from 68.3 per cent. Henderson Land Development's chairman Lee Shau-kee, bought a 'significant' portion of Agile's share placement through his private equity fund, Henderson vice-chairman Colin Lam Ko-yin said. Morgan Stanley, a sponsor of Agile's HK$3.62 billion initial public offering in December last year, arranged the placement. The bank just resumed research coverage on Agile, rating the stock 'overweight' in a report released yesterday with a target price of HK$8.10. Shares of Agile were suspended from trading before the start of the afternoon session yesterday when they were at HK$7.21. The stock has more than doubled from its offer price of HK$3.30. Agile, together with its controlling shareholder, raised a combined HK$9.9 billion over the past year in the capital market, including the latest share placement. Its previous fundraising deal was a sale of US$400 million seven-year bonds in September. Agile's cash call is the latest capital raising effort by mainland property firms to build up their reserves for expansion, as Beijing asked banks to tighten credit to real estate firms to curb land speculation. Hopson Development Holdings raised HK$996 million through a new share placement on November 3. One of its investors, Temasek, sold its entire stake in Hopson for HK$1.32 billion on Thursday. Recent deals also include Beijing Capital Land's for HK$2 billion and Shenzhen Investment's HK$873 million share placement on October 26. Greentown China Holdings, which raised HK$3.1 billion in its Hong Kong initial public offering in July, completed a US$400 million bond sale early this month. Shimao Property Holdings, which also went public in July and raised HK$4.3 billion, is selling US$500 million of bonds. Housing prices in 70 leading mainland cities rose 5.5 per cent year-on-year in the third quarter despite the government's austerity measures, according to figures released by the National Development and Reform Commission early this month. Cities such as Beijing and Shenzhen witnessed some of the highest price rises while Shanghai was the only city on the list which recorded a declining selling price, although the drop was only 1.1 per cent year-on-year.