Sunac turns to equity to reduce debt

Heavily-indebted property developer capitalises on share price surge to raise $516 million from top-up placement.
Sunac bought the majority stake in 13 Wanda theme parks.
Sunac bought the majority stake in 13 Wanda theme parks.

Sunac China Holdings has taken advantage of its skyrocketing share price to execute a HK$4 billion $516 million top-up placement that has raised much-needed capital to reduce its leverage after a series of high-profile acquisitions that have greatly expanded its landbank. 

The Tianjin-headquartered property developer sold 220 million shares overnight on Monday and was met with decent demand topping $1 billion according to sources familiar with the situation.

The strong uptick in Sunac’s share price meant the deal needed a relatively deep discount range of 5% to 8.8% to the stock’s HK$20.1 close, equivalent to HK$18.33 to HK$19.10 per share. The...

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