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Nanjing Textile goes public to raise HK $375m |
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2004-7-19
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Nanjing Textiles Import and Export plans to sell a one-third stake in its property affiliate on Hong Kong''s Growth Enterprise Market (GEM) to raise HK$375 million.
The Shanghai-listed company informed its 64 percent-owned Langsi Real Estate Company intends to sell about 33.4 percent of its equity or 272 million shares and if demand is strong enough then the company will sell an additional 40.8 million shares.
The stock will be priced at about HK$1.20.
The net proceeds of almost HK$330 million will be used mainly to finance the mainland developer''s property developments in Nanjing, it stated.
In advance of any initial public offering, Langsi Real Estate plans to sell stakes of undisclosed size to three shareholders - Zhang Jia Gang City Guotai Investment, Suzhou Yuanda Investment and Tian Min.
Langsi''s profits accounted for about 17 percent of Nanjing Textiles'' total earnings of 67 million yuan last year. The company conveyed the sale of the Langsi stake will dilute shareholder earnings as the company''s stake in the affiliate falls to 37.2 percent.
"The listing proposal will allow the property company to build up new funding channels in the international capital market and help develop its long-term business strategy,'''' it added. |
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