HKTV plunges as minimum order amount is raised

Shares of Hong Kong Television Network (1137) further fell 13.48 percent to HK$5.20 yesterday as the online shopping mall operator raised the minimum order amount for free delivery and announced a share placement.

The operator of HKTVmall yesterday increase the minimum order for free delivery in Feburary to HK$800 from HK$400 due to a staff shortage, while the delivery fee remained at HK$80 per order.

The online platform has become increasingly popular as more Hongkongers buy daily necessities, medical masks and household cleaning products online to avoid shopping in crowded supermarkets amid the virus outbreak.

Its average daily order number surged 64.7 percent year-on-year to 22,400 in January, while average merchandise value on orders jumped 49.3 percent to HK$10.9 million last month.

The company said yesterday it would raise HK$453.1 million by placing 90 million new shares at HK$5.15 apiece, a discount of 14.31 percent from the previous closing price.

HKTV intended to use the proceeds for expansion of the e-commerce business and as working capital. UBS is the sole placing agent of the deal.