Beijing Enterprises Water Raises $145 Million From Share Sale

Beijing Enterprises Water Group Ltd. (371) raised $145 million from a share sale to boost working capital, according to a term sheet obtained by Bloomberg News.

The company, principally engaged in the construction of sewage and reclaimed water-treatment and seawater desalination plants, sold 350 million shares at HK$3.21 apiece, a 5.3 percent discount to its Oct. 16 close, the terms show. The shares were originally offered at HK$3.19 to HK$3.29 each.

Beijing Enterprises Water sold new shares equivalent to 4.15 percent of enlarged capital to a controlling shareholder, Beijing Enterprises Environmental Construction Ltd., in a top-up placement, according to a statement to the Hong Kong stock exchange yesterday. Deutsche Bank AG managed the sale.

Khazanah Nasional Bhd bought a 5 percent stake in Beijing Enterprises Water for $152 million to become the company’s third-largest shareholder, the Malaysian sovereign wealth fund said on Oct. 4. It said the investment was made as China faces water scarcity due to population growth and urbanization.

The shares of Beijing Enterprises Water were suspended in Hong Kong yesterday and will resume trading today, according to the Hong Kong exchange filing.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net

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