New World group seeks $2 billion from rights issues

New World Development aims to raise HK$11.3 billion from a November rights issue and will also underwrite a HK$4.29 billion rights offering for New World China Land in December.
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Managing director Henry Cheng at the company's annual results announcement
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<div style="text-align: left;"> Managing director Henry Cheng at the company's annual results announcement </div>

New World Development and its 69%-owned subsidiary, New World China Land, have announced plans to raise a combined HK$15.6 billion $2 billion from two separate rights issues in November and December.

In a statement issued yesterday morning, the two Hong Kong-listed companies said that in light of the prevailing market conditions, it is in the best interests of the companies and their shareholders to raise long-term equity funding for general working capital New World Development and to refinance existing borrowings and debt New World China Land and the best way to do so now is through rights issues.

With Asian stock markets suffering another sell-off yesterday...

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