hopson-sells-128-million-of-new-shares

Hopson sells $128 million of new shares

Management is keen to increase the free float, but market watchers worry that the chunky sale may slow the upward momentum in the sluggish stock.

By Anette Jönsson

November 05, 2006

Hopson Development has raised HK$996 million $128 million from a placement of new shares that was priced at the top end of the indicative range.

While the Credit Suisse-led deal met with good demand among primary market investors, it is bound to cause some disappointment among existing Hopson shareholders given that it comes only six weeks after the Tiger Fund sold half its stake through a similarly sized placement.

The share price dipped after that sale and has been slow to recover despite a surge in the share price of other Mainland developers in recent weeks. However, in the three days just before last FridayÆs November 3 placement the stock rallied 10.7% to ThursdayÆs...

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