BRIEF: Laopu Gold raises $348 million through share placement to boost gold reserves
Jewelry retailer Laopu Gold Co. Ltd. (6181.HK) announced on Wednesday it will place 3.71 million new H-shares, representing 2.59% of the enlarged share capital for its Hong Kong-listed H-shares and 2.1% of its total issued shares. The shares were priced at HK$732.49 each, a 4.5% discount to the previous closing price of HK$767, raising net proceeds of HK$2.71 billion ($348 million).
The company said it will use 70% of the proceeds to increase its gold inventory ahead of major shopping seasons such as Christmas, New Year, and the Lunar New Year; 10% will be used to open new stores and renovate existing ones; and the remaining 20% will be used for working capital and general corporate purposes, including talent recruitment and operational expenses.
Laopu’s revenue surged 251% year-on-year to 12.35 billion yuan in the first half of this year, while its net profit jumped 286% to 2.27 billion yuan. The company previously raised about HK$2.7 billion through a placement in May, with only HK$10 million of that remaining by the end of September.
Laopu’ stock opened lower on Wednesday and closed at HK$707.50 by the midday break, down 7.76%.
By Lee Shih Ta
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