Shanghai Zendai Property, a Shanghai-based developer, raised HK$252 million through a share placement yesterday to fund its expansion, market sources said. In the top-up offer after the market closed, the company sold 800 million shares at 31.5 HK cents each, or an 8.7 per cent discount to its closing price of 34.5 HK cents yesterday, according to a term sheet sent to institutional investors. The new shares represent about 14 per cent of the developer's enlarged share capital. ABN Amro was the placing agent. Zendai initially offered 700 million shares, with an option to sell an additional 200 million shares if demand was strong enough, according to the term sheet. This is the second time this year the company raised funds on the equity market. In February, it raised HK$150 million by selling a three-year convertible bond. Zendai reported a 3.6 per cent gain in first-half profit to HK$135.2 million from HK$130.5 million a year earlier, as turnover grew 7.6 per cent to HK$807.6 million. Zendai, which has a land bank of 3.1 million square metres, intends to spend 500 million yuan on buying plots in the next 12 months, but has found the asking terms for land demanding, company executives said earlier. It said its land bank in Shanghai will be sufficient for development over the next three to four years. The company began selling its Zendai Cube Tower commercial development in Shanghai this month, with completion due in the second half of next year. Local brokerage 3V Capital said in a report that it estimates the tower will sell for an average of 15,000 yuan per square metre, which will bring in 600 million yuan for Zendai. Before the sale, shares in Zendai rose 7.81 per cent yesterday.