Shimao Property Holdings Ltd. expects to net HK$4.64 billion from a so-called top-up placement, with its main shareholder selling 158 million existing shares and then subscribing to the same number of new shares.
The major shareholder, Gemfair Investments Ltd., which is fully owned by Hui Wing Mau, chairman and an executive director of Shimao Property, is selling the shares at HK$29.58 apiece, and then subscribing to the same number of new shares at the same price, according to a Jan. 17 filing.
The shares sold by Gemfair represent about 4.79% of the property developer's total issued share capital and roughly 4.57% of the issued share capital after the top-up subscription.
Net proceeds from the share placement will be used for the development of Shimao Property's projects, to repay the company's debts and for general working capital expenditures of the group.
Completion of the share placement is expected on Jan. 22 or any other date agreed by Gemfair Investments and the placing agents, subject to various conditions.
Trading of Shimao Property's shares on the Hong Kong stock exchange resumed Jan. 20 at 9 a.m. local time, following the company's announcement of the placement.
Goldman Sachs (Asia) LLC, The Hongkong and Shanghai Banking Corp. Ltd. and Morgan Stanley & Co. International PLC are the placing agents for the offering.