New | Agile Property follows Country Garden’s lead with HK$2.8b rights issue

Agile Property Holdings plans to raise about HK$2.79 billion in a rights issue to bolster its financial position, in the second such share issue in the past month by a major Hong Kong-listed Chinese developer.

Agile would issue one rights share at HK$4 each for every five existing shares held, the company said in a filing to the Hong Kong stock exchange.

The price represents a 31 per cent discount to the stock’s closing price of HK$5.81 on Friday.

The company said it would use the proceeds to refinance its existing indebtedness and bolster general working capital.

“The directors consider that the rights issue would provide an opportunity for existing shareholders to participate in the development of the group, strengthen its capital base and financial position,” it said.

Rival Country Garden Holdings announced late last month that it would launch a HK$3.18 billion rights issue amid an industry downturn, with investors worrying about Chinese property developers’ soaring debts and slowing sales.