Shanghai Tonva Petrochemical seeks to raise up to HK$537m in rights issue

Shanghai Tonva Petrochemical plans to raise between HK$455 million and HK$537.1 million in a rights issue, it said on Thursday morning.

The mainland-incorporated company’s businesses include petrochemicals, road and bridge construction and logistics.

The fundraising, which is subject to shareholders’ approval, would see up to 324 million domestic rights shares and up to 307.92 million H-share rights shares issued, with 4.5 shares offered for every 10 existing shares, the company said in a statement to the stock exchange.

The company said the subscription price was yet to be determined. Its H shares last closed at 72 HK cents.

Shanghai Tonva said the funds would be used to diversify its petrochemicals product mix by adding chemical fertilisers and to repay debt while strengthening the financial position of the group.