6936.HK 002352.SHE

S.F. Holding Co. Ltd. (6936.HK; 002352.SZ) announced on Thursday that it raised HK$2.951 billion ($376 million) through a placement of 70 million new Hong Kong-listed shares priced at HK$42.15 each, representing an 8.77% discount to Wednesday’s closing price. The new shares equal 1.38% of the company’s enlarged issued share capital.

At the same time, the logistics company issued HK$2.95 worth of convertible bonds with a conversion price is HK$48.47 per share, representing a 4.91% premium to the previous close. If fully converted, the bonds could be exchanged into approximately 60.86 million of the company’s Hong Kong-listed shares, equal to about 1.2% of its enlarged share capital.

The company plans to use combined proceeds of about HK$5.9 billion from the two actions to enhance its international and cross-border logistics capabilities, support R&D, optimize its capital structure, and for general corporate purposes.

SF Holding’s shares opened lower on Thursday in Hong Kong and closed down 4.33% at HK$44.20 by the midday break.

By Lee Shih Ta

To subscribe to Bamboo Works weekly free newsletter, click here

Recent Articles

Illustration of a closed apple store in China

Apple’s China puzzle and an African phone pioneer’s peril

Apple returns to revenue growth in China, as it also closes its first store in the city of Dalian. What's next for the company in the world's largest smartphone market? And Transsion considers a Hong Kong IPO. Should investors buy into this biggest smartphone maker you've never heard of, banking on its status as Africa's top cellphone brand?