Advertisement

Heng Tai placement exploits booming price

Reading Time:1 minute
Why you can trust SCMP
0

Heng Tai Consumables Group, a consumer product distributor in the mainland, plans to raise as much as HK$515 million from a share placement, capitalising on its strong stock price, sources said.

The firm was selling up to 285 million new shares at a price ranging between HK$1.78 and HK$1.81 each, representing a discount of 5 per cent to 7 per cent on its last closing price of HK$1.91, according to a sale document obtained by fund managers.

The shares offered represent 20 per cent of the firm's enlarged share capital.

UOB Kay Hian (HK) is the placing agent.

Shares in Heng Tai have more than doubled so far this year, benefiting from the mainland's robust private consumption.

'Last year was the fourth consecutive year that China achieved a double-digit increase in gross domestic product, and now everybody thinks the trend will extend to this year based on the figures already announced,' said a fund manager.

Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x