Shun Tak opts for rights issue to raise $212 million

Rights offerings could become a trend this year as depressed share prices make companies shy away from share placements.

Shun Tak opts for rights issue to raise $212 million
Shun Tak operates a high-speed ferry service between Hong Kong and Macau

Shun Tak Holdings’ share price jumped 9.2% yesterday, recovering all the losses it made last Friday after announcing a fully-underwritten rights issue of at least HK$1.65 billion $212 million. The recovery was partly due to a continued gain in the Hong Kong stock market after the three-day lunar new year holiday, but also suggests that investors may have come around to the idea of doing a rights issue.

The company, which is controlled...

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