Chinese forestry company raises $166 million

China Grand Forestry Resources prices its follow-on at an 11.4% discount, suggesting investors need some convincing to add to their exposure in the sector.

Hong Kong-listed timber producer China Grand Forestry Resources CGF yesterday raised HK$1.29 billion $166 million from a placement of new shares that will help fund its highly aggressive acquisition plans.

Like the block in property developer Greentown China Holdings last week, this Morgan Stanley-led follow-on was sold at a substantial discount to the most recent market price. But in light of the current unpredictable nature of the secondary market, and the fact that CGF is a volatile stock anyway,...

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