Chinese hotpot giant Haidilao is looking to raise $300 million from a stock placement to top up its capital reserves, days after a radical move to trim around one-fifth of its restaurants to truncate losses, reports the South China Morning Post. The company plans to issue 115 million new shares at $2.62 each to SP NP Ltd, a vehicle controlled by one of its billionaire co-founders Shu Ping, according to a Hong Kong stock exchange filing early Friday. The price is about an 8% discount to the stock’s closing level on Thursday.
The top-up issue, about 2% of the company, follows a concurrent plan by the shareholder to sell the same number of shares at the same price to undisclosed buyers. Shu Ping and her husband Zhang Yong, the fourth richest Singaporeans according to Forbes, effectively control more than 55% of the Beijing-based hotpot chain operator.
Haidilao sank 9% to $2.59 in Hong Kong in Friday trading. The stock has declined 32% over the past month, wiping out more than $5.5 billion of market value, according to Bloomberg data.
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