BRIEF: Intel among subscribers to Comba’s $48 million placement

Telecommunications equipment seller Comba Telecom Systems Holdings Ltd. (2342.HK)  announced  on Monday that it will raise about HK$370 million ($48 million) through the placement of 341 million shares priced at HK$1.09 each.

The subscription price represents a slight 1.8% discount to Comba’s closing price of HK$1.11 per share on Monday and a 2.25% premium to its average closing price of HK$1.066 over the last five trading days. The new shares represent 10.99% of Comba’s enlarged share capital. Among the buyers, Yi Lei, the son of a major shareholder of Luxshare Precision Industry (002475.SZ), subscribed for 310 million shares, while U.S. chip giant Intel (INTC.US) subscribed for 31.04 million.

Proceeds will be used to strengthen the company’s financial position and provide additional working capital while expanding its shareholder base. Shares of Comba opened up 11.7% at HK$1.24 on Tuesday, though they later reversed course and were down 3.6% in the afternoon session .

By Lau Chi Hang

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