China Resources Gas raises $350 million from top-up placement

The share price dips 9.1% in morning trading after the deal is priced at an aggressive 8.2% discount.

China Resources Gas Group CR Gas, a distributor of natural gas, petroleum gas and liquefied petroleum gas LPG in China, has raised HK$2.71 billion $350 million from a top-up placement, taking advantage of a sharp run-up in its share price. The stock gained 4.5% to a fresh five-year high on Monday and was up 66% year-to-date before the deal.

The company, which has been expanding aggressively through acquisitions in recent years, is viewed as one of the leading names in the China gas sector and is generally well-liked by investors and analysts.

However, there was a lot of noise surrounding the transaction, partly because most...

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