Longfor follow-on

Longfor pockets $398 million from largest follow-on in five months

But a hedge fund-heavy order book leads to a sell-off in the Chinese property developer in the wake of the transaction.

Longfor Properties on Tuesday night raised HK$3.09 billion $398 million from a top-up placement. There have been few follow-ons by Hong Kong-listed companies this year, with most of the placement activity focused on sell-downs by existing shareholders, and this is the largest such deal since early April when Kunlun Energy raised $1.35 billion of fresh equity.

Longfor took advantage of a sharp rise in its share price last week after Wheelock chairman Peter Woo disclosed that he had increased his stake in the Chinese developer to just above 5%. Chinese property stocks were also lifted by the general optimism resulting from the QE3 announcement in the US and...

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