Comprehensive M&A data with integrated detailed company information

BCL to raise cash from shareholders
Posted on Monday, 11 March 2019 14:53
Chinese property developer Beijing Capital Land (BCL) is going cap in hand to shareholders for cash to bolster resources, reduce gearing, improve capital structure and fund further business breakthrough. The rights issue will be on the basis of 5:10, indicating the offering will comprise the sale of a third of the company’s enlarged equity currently valued at roughly HKD 5.25 billion (USD 668.74 million) in the unaffected market. Qualifying stockholders will be able to participate in potential growth while maintaining pro-rata Interests. BCL has four core operations: residential property; integrated outlets; urban core integrated complex; and primary land development, including shantytown redevelopment. The group’s innovative business lines range from cultural and creative industries, high-tech real estate and rental housing while Prime Golden Capital is the financing platform. It generated net profit attributable to shareholders of CNY 1.922 billion on revenue of CNY 23.26 billion in the 12 months to 31st December 2018, compared to CNY 2.11 billion on CNY 21.29 billion in FY 2017. The group had total contracted sales of CNY 70.64 billion, up 26.5 per cent from FY 2017. In terms of outlook, BCL wants to achieve annual sales of CNY 80.00 billion, which can then finance investments in key metropolitan areas, particularly in the Beijing-Tianjin-Hebei region. To refine project design and better gauge customer demand, the group will set up a big-data-powered customer analysis platform. While direct financing from the capital markets remains a key approach, BCL said it will explore real estate investment trust, supply chain finance and other channels. Zephyr, the M&A database published by Bureau van Dijk, shows the rights issue could be the third-largest announced globally so far this calendar year. © Zephus Ltd