China Poly Real Estate Group (600048.SH) wants to raise funds for future expansion through a private placement of new shares worth up to US$1.4 billion, the South China Morning Post reported. The company, which raised US$1.17 billion through a private placement in February, will sell up to 700 million shares to institutional investors. The shares will be priced at no less than RMB17.92 (US$2.62) each and China Poly Group, the listed company’s parent, will cover US$14.6-175.8 million of the total placement. The proceeds will be used to finance 12 projects in Beijing, Shanghai, Foshan, Hangzhou and Chongqing, which have investment return targets ranging from 14.14% to 34.16%, according to state media. China Poly is one of 16 state-owned enterprises that will be allowed to remain in the property market. Another 78 companies, which do not count real estate as their core business, have been ordered to exit the market.
Categories