HONG KONG: Citic Securities, China’s biggest brokerage by market value, will raise as much as HK$27.1 billion (S$4.7 billion) selling stock to 10 investors, including sovereign wealth funds in Kuwait, Singapore and Malaysia.
The company will sell as many as 1.1 billion new Hong Kong-listed shares at HK$24.60 each, according to a statement to the Hong Kong stock exchange on Monday. That’s a 19 per cent discount to Monday’s closing price. Citic shares have risen 3.6 per cent this year.
China’s brokerages have been selling shares as the nation’s stock-market boom boosts their earnings. Shenwan Hongyuan Group Co. said on June 12 that it plans to raise as much as US$2.9 billion (S$3.8 billion) in a private placement. Guotai Junan Securities Co. is set to price a share sale this week that may be China’s biggest since 2010.
Shares of Citic Securities gained 0.8 per cent in Hong Kong as of 9:56 a.m. local time, as the Hang Seng Index dropped 0.2 per cent. The company’s stock jumped 2.1 percent in Shanghai. The Hong Kong stock advanced 3.8 per cent this year, compared with the Hang Seng Index’s 14 percent climb.
