China Vanke Ltd, a major property developer, announced on Thursday that it had raised HK$3.92 billion ($499.43 million) in a Hong Kong share placement, the first test of investor appetite for a mainland developer share sale in 2023.
State-backed According to a filing, Vanke sold 300 million shares at HK$13.05 each. According to the term sheets of the deal announced on Wednesday, the price fell in the middle of an offer ranging from HK$12.93 to HK$13.20 per share.
The price was 6.12% lower than Vanke's closing stock price of HK$13.90 on Wednesday. In early Thursday trading, the shares fell as much as 5.3 percent to HK$13.16.
The Shenzhen-based developer stated that 60% of the proceeds would be used to repay its outstanding overseas debt financing, with the remainder being used to replenish working capital. It also stated that the proceeds will not be used for new domestic residential development projects.
The share sale accounted for 13.6% of the enlarged H shares and 2.51% of the enlarged total share capital, which included both Hong Kong and Shenzhen shares.
CLSA and Citi are the share sale's placement agents.
.jpg "Technology in Cancer Care: A story of evolving paradigms")
.jpg "Bringing Shop Floor to Manufacturer's palm: Smart Factory Solutions for tomorrow")
