An institutional investor in China Unicom, the smaller of two mobile-telephone operators on the mainland, sought to raise up to HK$2.43 billion by selling his shares after the market close yesterday, sources said.
The investor hired JP Morgan to arrange the sale of 150 million Unicom shares at between HK$16 and HK$16.20 each, according to a sale document sent to fund managers. The pricing represents an up to 5.77 per cent discount to the stock's close of HK$16.98 yesterday.
Although the sale document did not identify the institutional investor, only South Korea's SK Telecom and Artisan Partners own more shares than the those on offer.
Shares of Unicom have gained 21.29 per cent from a low of HK$14 on November 22. The recent rebound was boosted by expectations that Beijing's long-awaited proposed industry restructuring would take place soon.
'The size of the deal is relatively small compared with the market capitalisation of Unicom. It shouldn't have any negative impact on the share price,' said China Everbright Securities analyst Wong Chi-man.
Market observers said SK Telecom could be the vendor in the share placement as it received Unicom shares at HK$8.63 each by converting US$1 billion worth of bonds issued by the mainland firm earlier this year.