Sino Land seeks $570 million from top-up placement

The Hong Kong developer is offering 4.8% of the company at a 4%-7% discount to the latest close.
Hong Kong property developer Sino Land was in the market last night looking to raise up to HK$4.45 billion ($570 million) through a top-up share placement, but as of midnight, sources were still unsure whether the deal had been completed.

The terms looked reasonable enough, offering a discount to the latest close of 4%-7%, and at 4.78% of the market cap, the size wasnÆt that large in relative terms. However, Sino LandÆs share price has rallied 39.4% since the low on August 17, potentially making the price a bit much for some investors to stomach.

The price gains are entirely in line with the market though, with the Hang Seng Index having added 37%, or more than 7,100 points, in the past five weeks to a record close of 26,551 points yesterday.

Sino Land offered 220 million shares at a price between HK$19.57 and HK$20.21. The stock closed at HK$21.05 yesterday.

JPMorgan was the sole bookrunner for the offering, which was expected to have been heavily contested by several banks, given the decent size.

Placement activity in the Hong Kong market has been picking up over the past week as share prices continue to soar, making it tempting for companies to raise fresh funds or for existing shareholders to realise some of their profits.

On Thursday last week, Kerry Properties raised $533 million from an upsized offering at a 5% discount to its latest close, while Mainland conglomerate Beijing Enterprises Holding sold $476 million worth of shares at a 5.6% discount. A day later, the chairman of consumer electronic products retailer Gome Electrical Appliances raised $300 million by selling a 5% stake in the company at an 8% discount.
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