Dickson Concepts (International), the Hong Kong upmarket retailer, and First Tractor, the mainland farm machine maker, seek to raise as much as HK$748 million combined from two separate share placements, according to sources.
Hong Kong-listed firms have been tempted by the surging market to raise funds through share placements, as the benchmark Hang Seng Index hit a fresh record yesterday for the second straight day this week.
'There is no urgent need for cash for the two companies, but the strong stock market momentum is the incentive,' one banker said.
It is the first share placement for both firms in more than a decade.
Dickson Concepts will offer 62 million new shares at HK$7.37 to HK$7.80 each to raise up to HK$484 million, according to a sale document obtained by fund managers.
The range represents a discount of up to 9 per cent to the stock's last closing price of HK$8.10.
Morgan Stanley is the sole bookrunner of the share sale.
