Franshion Properties (China) said it plans to sell shares worth $349 million to investors in a rights issue aimed at raising funds for an acquisition to raise its hotel and office exposure in China.
Unlike bank loans or the sale of debt, the rights issue allows the company to raise funds without subjecting itself to fluctuations in interest rates.
Reuters reported Franshion Properties plans to issue 1.63 billion shares and will offer investors 23 shares for every 100.
Net proceeds raised will be used to fund the acquisition of China Jin Mao (Group) from its parent Sinochem Hong Kong and other Chinese state-owned firms.