NewCitic Securities to raise HK$27 billion in second Hong Kong private placement in a week

Citic Securities will raise up to HK$27.06 billion in a private placement, its second in a week, to a wide range of global investors.

Citic, the mainland’s largest brokerage, said that 70 per cent of the proceeds of the placement of new H shares to investors such as sovereign wealth funds from Kuwait, Malaysia and Singapore would go toward boosting margin financing, equity derivatives, fixed-income and commodities products.

The new shares, at HK$24.60 per share, were priced at nearly a 20 per cent discount to the firm’s closing price on Monday.

Citic Securities shares fell sharply last week after selling HK$11.53 billion in new H shares to the National Social Security Fund at a steep 43 per cent discount.