Shun Tak opts for rights issue to raise $212 million

Shun Tak Holdings’ share price jumped 9.2% yesterday, recovering all the losses it made last Friday after announcing a fully-underwritten rights issue of at least HK$1.65 billion ($212 million). The recovery was partly due to a continued gain in the Hong Kong stock market after the three-day lunar new year holiday, but also suggests that investors may have come around to the idea of doing a rights issue.