Evergrande Real Estate, the mainland's biggest property developer by area sold last year, is seeking to raise as much as US$580 million through a share placement after its strong performance in recent months.
The Guangzhou-based firm, controlled by mainland billionaire Hui Ka-yan, plans to sell up to one billion new shares at HK$4.35 to HK$4.50 each, according to a term sheet obtained by the . Hui controls 68 per cent of the firm.
The pricing represents a discount of 3.23 per cent to 6.45 per cent to Evergrande's closing price of HK$4.65 yesterday. Buyers of the shares are subject to a three-month lock-up period.
The proceeds will be used to repay debt and for general corporate purposes, the term sheet shows.
The placement comes after shares in the developer have soared 57 per cent since September, hitting their highest level in more than six months this month, due to the rising appetite of investors encouraged by the easing measures of central banks around the world.
