New | China Water Industry stock vaults up after raising HK$500 million in private placement

China Water Industry Group shares rose sharply on Wednesday, after the mainland water company raised HK$500 million from a group of investors including state-owned bad assets manager Huarong and the brokerage arm of conglomerate Guangzhou Yue Xiu.

At noon, shares of China Water Industry surged more than 11 per cent to HK$2.56, after hitting a fresh 52-week high of HK$2.64.

In a statement with the Hong Kong stock exchange, its chairman Wang De Yin said it plans to use half of its net proceeds to repay convertible bonds, while 40 per cent of the sum will be used for future business development.

The company said a total of five investors subscribed to the share offering, which is composed of 266 million shares at HK$1.88, a discount of 18.3 per cent to the closing price of HK$2.3 on May 26.

Shares of China Water Industry rose 110 per cent in the past year, beating a 27 per cent increase in the key Hang Seng index.