Intime Sells $96 Million of Stock to Singapore Fund to Expand
Stock Chart for Intime Retail Group Co Ltd (1833)
Intime Department Store Group Co., a retailer in eastern and central China, is raising HK$747 million ($96 million) for expansion by selling shares to Government of Singapore Investment Corp.
The government fund, known as GIC, will buy 76.7 million new shares for HK$9.90 each and 57.5 million existing shares from company founder Shen Guojun at the same price, increasing its stake to 9.1 percent from 2.4 percent, according to a Hong Kong stock exchange filing from Intime yesterday.
There have been more than 390 deals involving consumer- related companies in China during the past year, with a total value of more than $20 billion, according to data compiled by Bloomberg. Nestle SA agreed in July to buy 60 percent of Dongguan, Guangdong-based candy maker Hsu Fu Chi International Ltd. for about $1.7 billion.
China’s retail sales rose 17.2 percent in October from a year earlier and have climbed an average of 17.7 percent a month in the past two years, according to data compiled by Bloomberg. Per-capita disposable income for people in towns and cities rose 8 percent to 19,109 yuan ($3,011) last year, and 10.9 percent to 5,919 yuan for those in rural areas, data compiled by China’s statistics bureau and released in January show.
Intime, based in Beijing, will resume trading in Hong Kong today, after being suspended at 9:14 a.m. yesterday. The stock gained 9.6 percent to HK$10.70 on Nov. 14. It has dropped 5.8 percent this year, compared with a 16 percent decline for the benchmark Hang Seng Index.
GIC bought 55.1 million shares, or 0.6 percent, in the July initial public offering in Hong Kong of Sun Art Retail Group Ltd., China’s largest hypermarket operator.
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