Soaring stock price helps Vipshop raise $550m

Chinese online fashion retailer capitalises on soaring stock price to issue the biggest convertible bond of the year so far.

New York-listed Vipshop took advantage of the rally in Chinese internet stocks to raise $550 million on Tuesday by selling a convertible bond to investors.

The deal provides the Chinese online fashion retailer with three-year funding at 1.5% and will convert into equity if the stock reaches $201.24, which represents a 40% premium to the current share price.

Shares in Vipshop have been rising steadily since last year, quadrupling in value from $25 in June to $100 in February this year and then soaring to a high of $176 last week.

This is an extraordinary gain for a company that raised just $73 million...

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