China Everbright Shares Dive After $1.3 Billion Rights Issue
- Subscription price represents 31% discount to Monday’s close
- Company has more than 20b yuan from cash and credit lines: CFO
This article is for subscribers only.
China Everbright International Ltd. plunged the most in almost a decade after announcing plans to raise about HK$9.96 billion ($1.3 billion) from a rights issue for its waste-to-energy projects, business expansion and the repayment of bank loans.
The company plans to issue 1.66 billion rights shares on the basis of 10 shares for every 27 existing shares, it said in a statement to the Hong Kong stock exchange Tuesday. The subscription price is HK$6 per rights share, a discount of about 31 percent to its closing price Monday of HK$8.75, according to the statement.