aoyuan-sells-80-million-of-new-shares

Aoyuan sells $80 million of new shares

The Chinese property developer prices its placement at a 12.2% discount on a day when a planned acquisition of a Guangzhou property project falls through.

China Aoyuan Property Group on Friday joined a growing list of Chinese real estate developers to raise capital from a top-up share placement. The Hong Kong-listed company sold HK$622.8 million $80 million worth of shares that were priced at the bottom of the indicated range, resulting in a 12.2% discount to Thursday's closing price.

The discount was wider than for a couple of other recent placements for Chinese property developers -- Yanlord came to market at a 10% discount and KWG Property achieved an 8.6% discount -- but was likely deemed necessary since the Aoyuan deal corresponded to a sizeable 16% of its existing share capital and 19 days' worth of trading volume based...

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