China Vanke Co Ltd said on Thursday it planned to sell HK$7.89 billion ($1.02 billion) worth of H-shares to raise capital to repay overseas debt financing and for development of domestic residential properties, reported Reuters.
The Chinese property developer plans to sell 315.89 million new H-shares, representing 2.72% of the enlarged total issued share capital, to no less than six professional, institutional or other investors.
The new H shares will be issued at HK$25 apiece, or a 4.76% discount to Wednesday’s close of HK$26.25 each.
Major shareholder Shenzhen Metro Group Co Ltd’s stake in the developer will be reduced to 27.91% on completion of the deal, from 28.69%.