Hang Seng Index

China Jinmao plans to raise HK$3.33b from placing shares at discount hit stock

Third most traded stock in Hong Kong with volumes of HK$4b

PUBLISHED : Monday, 15 January, 2018, 2:48pm
UPDATED : Monday, 15 January, 2018, 11:21pm

Shares of China Jinmao Holdings Group, a property unit of Sinochem Group, sank on Monday after it announced plans to raise HK$3.33 billion (US$425 million) from placing 900 million shares at a discount towards working capital.

The placement price of HK$3.7 per share is 6.8 per cent lower than its previous close on Friday.

The property developer said it planned to sell 900.124 million new shares to Sinochem Hong Kong, its biggest shareholder. Sinochem will buy these new shares after selling the same number of existing shares to “no less than” six independent investors, including Kerry Holdings and New China Life Insurance.

The shares make up about 8.43 per cent of the company’s existing share capital, or 7.78 per cent of enlarged share capital after the deal is completed.

After the completion of the deal, Sinochem’s stake in China Jinmao will decrease to 49.76 per cent from 53.95 per cent.

Goldman Sachs and HSBC acted as the placing agents.

Shares of China Jinmao sank on Monday, briefly sliding to a low of HK$3.74, down 6 per cent from Friday. By early afternoon, it traded at HK$3.81, off 4 per cent.

The stock was the third most actively traded on the Hong Kong market on Monday, with HK$4 billion worth of shares changing hands.

Tencent Holdings and Ping An Insurance topped the list, with a turnover of HK$4.9 billion and HK$4.2 billion, respectively.