China's Geely raises HK$6.5b from share sale
[HONG KONG] Geely Automobile Holdings said on Friday it raised HK$6.48 billion (S$1.19 billion) from a share placement as the Chinese automaker looks to replenish its coffers to finance growth in the world's largest auto market.
Hong Kong-based Geely has sold 600 million primary shares at the bottom of the HK$10.80 to HK$11.20 price range, or at a 7.85 per cent discount to the last closing price of HK$11.72, according to its release.
The offering represents about 6.1 per cent of its enlarged share capital, and the company plans to use the proceeds to support its business development and general growth.
Its share placement comes after China's economy suffered a 6.8 per cent contraction in the first quarter, as the country reeled from an epidemic that started in the central city of Wuhan.
Geely Automobile, based in the eastern province of Zhejiang, is China's most globally high-profile automaker following investments by parent company Zhejiang Geely Holding Group in European manufacturers Volvo Car and Daimler.
Geely Automobile and Volvo - which Geely's parent bought from Ford Motor in 2010 - are planning to merge and list in Hong Kong and possibly Stockholm.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Geely's stock dropped nearly 10 per cent to HK$10.60 on Friday.
Bank of America, Goldman Sachs, HSBC, Morgan Stanley and UBS were the bookrunners for the transaction.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Transport & Logistics
Toyota hits record annual output, sales on robust demand
Nissan, Mazda roll out new models for China as they aim for comeback
VinFast chief plans to invest US$1 billion more from his fortune in EV maker
XPeng CEO says its software, AI upgrades to enter ‘super fast cycle’
Swedish manufacturer is latest to offer electric pleasure craft in Singapore
Mercedes says it will continue to invest in China tie-ups