This March 25, 2018 photo shows an advertisement of Sunac in Shanghai. (PHOTO / VCG)
HONG KONG - Chinese mainland property developers kicked off the new year with a strong pipeline of onshore financing moves.
This, despite China having tightened oversight of both onshore and offshore financing for the once red-hot real estate sector in a bid to cool speculation.
Sunac China Holdings plans to sell new shares worth HK$8 billion (US$1.03 billion) to third party investors through its placement agent Morgan Stanley, it disclosed in a filing to the Hong Kong Stock Exchange
Sunac China Holdings plans to sell new shares worth HK$8 billion (US$1.03 billion) to third party investors through its placement agent Morgan Stanley, it disclosed in a filing to the Hong Kong Stock Exchange on Friday.
The Beijing-based property developer looks to sell 186.92 million shares, representing 4.03 percent of its enlarged share capital, to no fewer than six independent investors. The proceeds will be used for general corporate purposes.
The new shares will be sold at HK$42.80 each, at an 8.25 percent discount to Thursday’s closing price of HK$46.65 each.
The share issuance comes right after Kaisa Group, headquartered in Hong Kong with its business focused on the Pearl River Delta region, sold senior notes worth US$500 million on Thursday. The coupon of its notes due 2025 is 10.5 percent. The bond issuance excercise garnered overwhelming responses from more than 150 institutional investors with more than US$2.8 billion booked in orders. Asian and European accounted for 73 percent and 27 percent of the subscription orders, respectively.
Sunac China Holdings dropped 4.29 percent to finish its morning trading session at HK$44.65 on Friday. Kaisa Group edged down 0.5 percent to close at HK$4.02 by Friday noon. The benchmark Hang Seng Index remained flat to close the morning session at 28576.92 points.
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