Sunac Shares Plunge 10% After Placement Prices Near Bottom End
(Bloomberg) -- Sunac China Holdings Ltd. shares tumbled by the most since July after China’s most indebted developer raised $1 billion in a top-up share placement that priced near the low end of a marketed range.
Sunac shares fell 10 percent in Hong Kong at 9:26 a.m., the biggest intraday decline since July 18. Before today, its shares surged about 447 percent this year to rank among the best performers on the MSCI China Index.
The Tianjin-based company sold 251.5 million shares at HK$31.10 each, according to a Friday exchange filing, near the bottom end of a marketed range. The price represents an 11.9 percent discount to Thursday’s close of HK$35.30. The developer initially offered 226.5 million shares, according to terms for the deal obtained by Bloomberg on Thursday.
Sunac, one of China’s most aggressive dealmakers, last month threw Leshi Internet Information & Technology a lifeline that includes loans of about $270 million. That deal came after Sunac’s January agreement to invest almost $2.3 billion and buy stakes in three units of the video streaming and TV giant.
The placement follows a $516 million share sale from Sunac in July, after it agreed to buy theme park assets from Dalian Wanda Group Co. Sunac plans to use the proceeds from the share sale for general working capital, Friday’s statement shows.
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