Hong Kong Rally Drives Share Sale BoomBy
Hong Kong’s market rally is benefiting developers to drugmakers, which rushed to sell stock in the biggest week for follow-on equity offerings in more than two years.
Companies listed in the city priced a combined $2.5 billion of such share sales last week, making it the busiest week since June 2015, according to data compiled by Bloomberg. The flood of new equity came as the benchmark Hang Seng Index soared past 32,000 points, breaking a previous all-time high set a decade ago, while a gauge of Chinese companies listed in the city is on its longest-ever winning streak.
The biggest offering came from Chinese homebuilder Country Garden Holdings Co., which said Jan. 17 it sold $1 billion of stock to pay down debt. China Hongqiao Group Ltd., the nation’s biggest aluminum producer, said a day earlier it raised $798 million.
More deals are coming. Sinopec Oilfield Service Corp. has appointed investment banks to arrange a sale of H shares worth about $640 million based on Friday’s closing price, according to a Dec. 18 exchange filing. China Dongxiang (Group) Co., which sells Kappa sportswear products in China, announced on Sunday a $21 million stock placement to its executives.