Kingboard Laminates' parent sells $220 million of stock

The deal is upsized by 50% and closes well above the placement price in the aftermarket as investors welcome the increase in the freefloat. Meanwhile, Metro Pacific shares continue to gain in the Philippines after last Friday's exit by BTF.

A block of Kingboard Laminates shares changed hands on Tuesday, marking the latest in a string of sell-downs in Hong Kong-listed companies. However, this wasn’t a case of an external shareholder trimming its stake, but rather a reallocation of capital within the Kingboard group. The seller was a wholly owned subsidiary of Kingboard Chemical Holdings, which is the parent and controlling shareholder of Kingboard Laminates. 

The upsized deal raised a combined HK$1.71 billion $220 million and saw Kingboard Chemicals’ stake drop to about 66% from 73.5%.

The increase in the freefloat from below 27% to 34% helped attract demand for the share sale both from existing shareholders, who welcomed the greater liquidity, and...

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