Sunac China Holdings Ltd. is placing 251.5 million shares of the company for gross proceeds of approximately HK$7.82 billion.

Sunac International Investment Holdings Ltd., the developer's controlling shareholder, conditionally agreed to subscribe for all the shares, which represent an approximately 5.72% stake in the company after the placement, at HK$31.1 per share.

Sunac China said the placement will further enlarge its shareholders' equity base, among other benefits. The estimated HK$7.77 billion net proceeds will be used as general working capital of the company.

The Dec. 15 placing agreement was signed by the company, Sunac International as the vendor and Morgan Stanley & Co. International plc as the placing agent. The placement is expected to be completed Dec. 19.