Milk producer and top executives sell shares to raise HK$2.7b
China Mengniu Dairy, the country's largest liquid milk producer, yesterday joined a series of mainland companies that have raised money from big share sales over the past two months.
Market watchers said many more were expected to join the rush to raise fresh capital amid the recent stock-market highs.
Inner Mongolia-based Mengniu, along with its senior management, tapped the equity market by offering HK$2.7 billion worth of new and existing Mengniu shares after the firm reported a better than expected 59 per cent surge in last year's profit to 727.35 million yuan on Thursday, market sources said.
The move was the first time the milk producer had raised new capital by issuing new shares since its initial public offering in 2004.
The company is selling 57.57 million new shares at between HK$23.60 and HK$24 each, representing up to a 5.03 per cent discount to the last closing price of HK$24.85, according to a sale document obtained by fund managers.
