China Huiyuan Juice Group Ltd. (1886), the nation’s biggest juice maker by market share, plans to raise HK$382.5m million ($49.3 million) selling new shares to create working capital and repay debt.
The company will sell 75 million shares at HK$5.10 each to at least six investors, according to a Hong Kong stock exchange filing yesterday. UBS AG (UBSN) is the placing agent, the company said.
Huiyuan’s shares have almost doubled this year compared with a 4.7 percent gain for Hong Kong’s benchmark Hang Seng Index. The Beijing-based company’s first-half profit was 114 million yuan ($19 million), against a net loss of 32 million yuan the previous year.
The stock dropped 1.6 percent to HK$5.45 on Dec. 3. The shares were suspended yesterday in Hong Kong pending the company statement and will resume trading today.
Huiyuan’s share of China’s 100 percent juice market was 60.8 percent in the first half of 2013, according to the company’s interim report, which cited data from Nielsen Holdings NV. It was also the market leader in the 100 percent juice and nectar market, with a 44.6 percent share, it said.
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