China Overseas Grand Oceans Group Ltd. closed a HK$4.66 billion rights offering underwritten by its China Overseas Land & Investment Ltd. parent, in which it received valid acceptances and applications for 3,025,281,394 rights shares.
As it planned to issue only 1,141,119,947 rights shares, the offering was oversubscribed by about 265.12%. Following the issuance, China Overseas Land and its affiliates will own an approximately 38.34% interest in China Overseas Grand.
All conditions related to the agreement signed by the issuer and its underwriters were fulfilled and became unconditional Jan. 29, and the offering closed Jan. 26. Dealings in the rights shares on the Hong Kong stock exchange begins Feb. 6 at 9 a.m.
The rights shares were issued at a subscription price of HK$4.08 apiece, and the company earlier said the HK$4.61 net proceeds from the offering will be used to repay debt, finance business development and for general corporate purposes.
