China Resources Land, a red-chip housing developer whose shares have outperformed the Hang Seng Index this year, is raising as much as US$513 million from a share placement to fund acquisitions and add to its land bank.
The company, which is joining a long list of firms selling shares as the Hong Kong market climbs to record highs, is offering investors an indicative range of HK$9.81 to HK$10.02 per share, according to a term sheet sent to investors.
That represents a 4 per cent to 6 per cent discount to the HK$10.44 at which the shares traded before they were suspended yesterday.
China Resources Land plans to sell 400 million shares, 10.7 per cent of its enlarged share capital. The sale could raise between US$502 million and US$513 million. Credit Suisse is arranging the transaction. The bank declined to comment.
Shares of China Resources Land have risen 12 per cent this year. The Hang Seng Index, which briefly broke through 21,000 points for the first time yesterday, has risen 4.7 per cent by comparison.
Proceeds from the sale will go to buying assets from the company's mainland parent, paying off HK$2.2 billion of outstanding land premiums and the acquisition of land.
China Resources in November said that it had bought land worth HK$2.7 billion in Beijing and Chengdu from China Resources Holdings, its mainland-based parent.
