New | Hsin Chong plans to raise HK$2.3b in rights and placement

Hsin Chong Construction, a Hong Kong-listed construction company, plans to raise up to HK$2.3 billion by launching a share placement and rights offering simultaneously, it said in a statement with the Hong Kong stock exchange on Friday.

At 11am in the morning trading session, shares of the Hsin Chong rose more than 2 per cent to HK$0.96 apiece, compared with a notable decline in the boarder stock market amid a plunge in oil prices to five-year lows.

The company said it plans to issue up to 904 million rights shares to the group’s existing shareholders, while selling 1.47 billion new shares at HK$1 to six investors.

A minimum of HK$2 billion and up to HK$4.4 billion will be needed to finance its property projects, according to the company’s estimate.

About HK$1.2 billion in the newly raised capital will be used to repay a short-term debt due in 2015.

The fund-raising plans come after the company announced in May to pay HK$10.25 billion for properties in Sanshui city, Guangdong province, which will be developed into residential and commercial projects.