New | Three top mainland firms tap the market for US$4.62 billion

A trio of mainland firms yesterday unveiled plans to raise a combined US$4.62 billion of capital, adding to the flood of equity issuance in Hong Kong.

"It was probably the biggest single day for cash calls since mid-May," said Sam Chi Yung, a strategist at Delta Asia Financial. On May 13, seven companies announced plans to raise a total of HK$40 billion, he said.

The Hong Kong, Shanghai and Shenzhen stock exchanges saw companies raise a total of US$29.79 billion through share placements in May, a more than fivefold increase from a year earlier, according to data provider Dealogic.

Yesterday morning, BYD, the world's largest supplier of rechargeable batteries, said it aims to raise 15 billion yuan (HK$19 billion) from an A-share placement to make new investments as well as to repay loans.

In a filing with the Hong Kong stock exchange, BYD said it would issue up to 261 million new A shares on the Shenzhen stock exchange at 57.4 yuan apiece, a 24.5 per cent discount to its last traded price of 76 yuan. The A shares will be placed to a maximum of 10 investors. The planned 15 billion yuan share placement will be the fifth-largest offering by a Chinese issuer this year, said Dealogic.

Also yesterday morning, Alibaba Pictures announced plans to raise a net HK$12.11 billion from a share placement that may be used for acquisitions.