Mid-sized property developer Kowloon Development plans to raise as much as HK$1.16 billion from a top-up share placement to help fund its mainland expansion.
Kowloon Development yesterday offered to sell 58 million shares, or 8.5 per cent of its existing share capital, at HK$13.38 each. It has an option to sell a further 29 million shares.
Investors are entitled to a dividend of 13 HK cents per share, payable on October 6, according to term sheets sent to fund managers after the market close yesterday.
The offer price represents a 5.64 per cent discount to the stock's closing price of HK$14.18 yesterday. Cazenove Asia is the bookrunner of the deal.
The placement came after Kowloon Development's shares gained 70 per cent this year, outpacing the 15 per cent advance in the Hang Seng Index.
The proceeds will be used for capital expenditure, land acquisitions in China and general working capital, the term sheet said.