Shares of Xinyi Solar, a unit of the mainland’s Xinyi Glass, fell after it announced a plan to raise HK$1.15 billion by selling shares at a discount to build solar farms and a solar panel glass production plant in Malaysia.
“The directors consider that the [share placement] will provide Xinyi Solar with an opportunity to raise further capital … while broadening its shareholders base and capital base,” the two firms said in a joint filling to Hong Kong’s stock exchange.
Xinyi Glass will sell 500 million existing Xinyi Solar shares at HK$2.30 each to at least six professional investors, before subscribing to the same number of Xinyi Solar shares at the same price.
This will see Xinyi Glass’ stake in Xinyi Solar diluted to 27 per cent from 29.3 per cent due to the latter’s enlarged issued share capital.
The share transaction price is 8 per cent lower than Xinyi Solar’s closing price of HK$2.50 on Tuesday.
Its share price fell 7.6 per cent to HK$2.31 at 9.45am on Wednesday.
