Sino Forest completes million private placement ahead of HK IPO

The company raises cash for the second time this year ahead of its Hong Kong listing.

Toronto-listed, integrated woods producer, Sino Forest has completed a private placement ahead of its proposed listing in Hong Kong later this year. The company sold 7.22 million class A subordinate-voting shares late last week at C$2.40 per share versus a spot close of C$2.80. The company raised C$17.328 million $12.44 million and will use proceeds to develop its international wood sourcing capabilities.

HSBC led the placement and will sponsor the forthcoming $70 million to $100 million IPO, which is expected to comprise 230,000 hectares of forest plantations in Southern China. Earlier this year, the company also issued a convertible and has seen Fidelity increase its stake to 12.18%.

Company chairman...

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