MAINLAND group Guangdong Investment is to raise $607 million for working capital by placing 124 million shares at $4.90 each. The issue represents 7.4 per cent of the existing issued share capital of the company and 6.8 per cent of its enlarged share capital. At present, the company's parent, Guangdong Enterprises, owns 47.2 per cent of the Hong Kong-listed vehicle. On completion of the deal, it will have 43.9 per cent. The private placing will go to independent third parties, most likely institutional investors in Europe, North America, Japan and Southeast Asia. Brokerages cited under the subscription and underwriting agreement are Peregrine Capital, Peregrine Brokerage, Salomon Brothers Hong Kong, Nomura International and Swiss Bank Corp. Projects mentioned in the statement from Guangdong Investment which are to benefit from the proceeds include Shenzhen Brewery, Guangzhou Yangcheng Malting Plant and Guangdong Teem (Holdings), a retail business and a commercial property project.