Chow Tai Fook share sale brings in US$100m
The 93.9 million shares, slightly less than 1 per cent of the free float, were priced at HK$8.50, just above the floor of an indicative range of HK$8.40 to HK$8.70.
An undisclosed institutional investor in Chow Tai Fook Jewellery raised more than US$100 million by selling a slice of the jeweller's shares after they soared 13 per cent yesterday.
The 93.9 million shares, slightly less than 1 per cent of the free float, were priced at HK$8.50, just above the floor of an indicative range of HK$8.40 to HK$8.70.
The final price represented a discount of 7 per cent to the closing price of HK$9.16, according to a term sheet obtained by the Post.
People with direct knowledge of the deal said more than 50 investors, including long-only funds and hedge funds, bought the offloaded shares.
Chow Tai Fook shares had jumped by 15.9 per cent at one point in the morning session yesterday. They closed the day up 13 per cent, the biggest one-day gain since the company went public in December 2011, after the family-controlled chain posted solid results.
The jewellery retailer's revenue grew 63 per cent in the quarter to June as mainland buyers snapped up gold products to take advantage of the drop in the price of gold since April.