Cash-strapped developer Goldin to raise US$178 million through share sale for debt repayment, working capital

The company plans to sell 1.39 billion new shares at HK$1 each

Billionaire Pan Sutong’s shareholding will fall to 59.05 per cent from 70.86 per cent

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The fundraising exercise comes days after Goldin’s creditors said it had no right to sell its headquarters in Kowloon Bay, pictured. Photo: Sam Tsang

Published: 9:01pm, 11 Oct 2020Updated: 6:47pm, 12 Oct 2020

Cash-strapped Hong Kong property developer Goldin Financial Holdings plans to raise HK$1.38 billion (US$178 million) in net proceeds from a share sale to at least six investors, the company said in a filing to the local stock exchange on Sunday.

The company, which is controlled by billionaire Pan Sutong, plans to sell 1.39 billion new shares at HK$1 each, which represents a discount of 3.47 per cent on the average closing price of HK$1.036 over five trading days leading up to September 28, the last trading session before its placement agreement, it said.

“The net proceeds from the placing are intended to be used for repayment” of debt and general working capital, Pan said in a company statement. His shareholding in Goldin will fall to 59.05 per cent from 70.86 per cent currently with the completion of the share sale.

The fundraising exercise comes days after Goldin’s creditors said it had no right to sell its headquarters in Kowloon Bay. Its liabilities amounted to less than HK$18 billion in total as of June 30, according to its annual accounts, which were published recently. Its cash reserves, however, stood at HK$23 million, having dropped sharply from HK$2.4 billion as of December 31 last year.

The developer and its creditor are both currently claiming the ownership of the 28-storey Goldin Financial Global Centre in Kowloon Bay. On September 28, the receivers and managers of Goldin Financial Global Centre engaged Knight Frank as the sole agent to seek buyers for the grade A office building, which could fetch at least HK$12 billion. A few days later, on September 30, Goldin said in its annual results announcement that it had entered into a provisional sale-and-purchase agreement for the building with an independent third party for HK$14.3 billion the previous day.

Goldin Financial Global Centre in Kowloon Bay. Photo: Handout

Cash-strapped developer Goldin to raise US$178 million through share sale for debt repayment, working capital

.css-1mniedq{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;} The company plans to sell 1.39 billion new shares at HK$1 each Billionaire Pan Sutong’s shareholding will fall to 59.05 per cent from 70.86 per cent

The company plans to sell 1.39 billion new shares at HK$1 each

Billionaire Pan Sutong’s shareholding will fall to 59.05 per cent from 70.86 per cent