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Seazen to raise HKD 2.73bn
Posted on Tuesday, 14 January 2020 12:05
Seazen Group is going cap in hand to no less than six investors for HKD 2.73 billion (USD 351.38 million) to fund its long-term business development and support general working capital.
The Cayman Islands-incorporated property group has hired Citigroup Global Markets and global coordinator, bookrunner and placing agent for the sale of 311.00 million new shares, which account for a 5.0 per cent stake of the enlarged capital.
Its issue price of HKD 8.78 apiece represents a discount of 3.0 per cent to the close on 13th January, the last trading day prior to the announcement, and of 7.0 per cent to the five-day average finish.
Zephyr, the M&A database published by Bureau van Dijk, shows 363 capital increases by land subdivision and real estate property management companies have been announced since the beginning of 2019.
The cash call will be among the top 20 by value, ahead of the USD 337.40 million convertible bond issue by Preos of Germany and behind the qualified institutional placement by Godrej Properties of India worth USD 357.98 million.
Seazen is mainly engaged in property development and investment, as well as the management of commercial real estate, in China.
The company said the equity dilution should provide an opportunity to raise further cash to meet possible future growth plans while broadening its shareholders’ base and improving its capital structure.
Seazen had total assets of CNY 452.94 billion (USD 65.66 billion), as at 30th September 2019 (30th September 2018: CNY 330.32 billion).
The company booked operating revenue of CNY 29.56 billion in the first nine months ended 30th September 2019 (Q1-3 2018: CNY 24.79 billion).
It posted net profit attributable to shareholders of CNY 3.73 billion, up from CNY 3.12 billion over the comparable period in 2018.
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