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Anxianyuan kicks off rights issue
Posted on Thursday, 26 March 2020 10:30
Cemetery manager Anxianyuan China Holdings is going cap in hand to shareholders for HKD 133.30 million (USD 17.19 million) to improve its financial position, gearing and liquidity.
The Bermuda-incorporated, China-based investment holding company is issuing up to 1.33 billion new shares via a rights issue on the basis of three shares for every two existing stocks held.
At HKD 0.10 apiece, the price represents a discount of 32.9 per cent to yesterday’s close of HKD 0.15 and of 35.6 per cent to the average five-day finish.
It is also 84.9 per cent down on the net asset value of HKD 0.66 each on the unaudited equity attributable to owners of HKD 586.80 million, as at 30th September 2019.
Anxianyuan is mainly involved in the development and operation of cemeteries, as well as being engaged in etiquette and worship services, tombstone, funeral supplies sales, and landscaping.
The group believes its business will increase steadily in view of the aging domestic population, China’s continuous economic growth and the improved spending power of local residents.
It has obtained relevant government approval to develop a commercial cemetery by phases with a total investment of CNY 450.00 million to expand its graveyard construction and management activities.
The location in the Oudong district of Fuyang City, Anhui province has a land area of 169.41 square metres and a floor area of 7,800 square metres, including an integrated service complex, a funeral hall and a car park.
Anxianyuan had revenue of HKD 98.32 million in the unaudited six months ended 30th September 2019 (H1 2018: HKD 97.90 million) and booked a net profit attributable to shareholders of HKD 9.73 million (H1 2018: CNY 9.18 million).
Zephyr, the M&A database published by Bureau van Dijk, shows 2,776 capital increases have been announced in 2020 to date.
Some of the largest are by Contemporary Amperex Technology, Bank of China, Tesla, GMR Airports and Delivery Hero.
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