BRIEF: China Ruyi raises $500 million in share placement at slight discount
Entertainment company China Ruyi Holdings Ltd. (0136.HK) announced on Tuesday that it would raise HK$2.7 billion ($347 million) through the sale of 1.15 billion shares at a subscription price of HK$2.37 per share. The company said it will also concurrently place 490 million new shares at the same price, raising another HK$1.16 billion, bringing total net proceeds from the two deals to HK$3.87 billion. The subscription and placement price represents a 2.07% discount to the company’s Monday closing price of HK$2.42.
Ruiyi said the new funds will be used for content production, purchasing scripts and copyrights, acquiring film and television program rights, as well as for general working capital purposes.
Earlier this month, Ruiyi announced its acquisition of 30% of game developer Beijing Yonghang Technology from Tencent (0700.HK) for a total consideration of 830 million yuan ($114 million). Yonghang’s core assets include its popular game “QQ Dance”.
China Ruyi’s stock opened flat at HK$2.42 on Tuesday but rose after that and closed up 2.89% at HK$2.49 at midday break.
By Lee Shih Ta
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