China Grand Forestry Resources, an apparel maker-turned-timber company, hopes to raise as much as HK$1.32 billion from a share placement, according to the term sheet.
The company is offering 539.6 million shares at between HK$2.40 and HK$2.60 each, representing a 4.06 per cent to 11.43 per cent discount to yesterday's closing price of HK$2.71. Morgan Stanley is arranging the sale.
China Grand Forestry shares, which have risen 153 per cent this year, were suspended from trading yesterday morning. The company raised HK$460 million from a share placement in January.
It plans to triple its inventory to one million hectares by next year.
Net profit surged to HK$1.23 billion last year from HK$83.2 million in 2005 on improved sales of timber and saplings that fetched higher prices on growing demand.
China Grand Forestry last week said it had paid 11.9 million yuan for 10,000 hectares of land containing pine, fir and hardwood trees. The company leased the land in Guangxi province, bordering Guangdong, from Hunan Shengtai Forest Development for 40 years.
