GF Securities to raise $6.1 billion through share sale, convertible bonds issuance

GF Securities (1776) said it plans to raise HK$6.1 billion through a share sale and convertible bonds issuance. 

Its shares slumped by 4.5 percent following the announcement. 

It intends to use the proceeds from for capital injections into its offshore subsidiaries to support the group’s international business development, according to a filing on Wednesday. 

The company has agreed to sell 219 million shares, representing 11.4 percent of the issued H shares or 2.8 percent of the enlarged share capital. The shares are priced at HK$18.15, a 8.38 percent discount to the closing price on Tuesday. 

The aggregate net proceeds, after deduction of the commissions and estimated expenses, from the placing are expected to be approximately HK$3.96 billion. 

The firm also plans to issue HK$2.15 billion in principal amount of zero coupon convertible bonds due 2027, which are expected to be traded on the Vienna Stock Exchange and the Hong Kong Stock Exchange. 

Assuming full conversion of the bonds, approximately 5.99 percent of the number of enlarged issued H shares and 1.41 percent of the number of issued shares will be converted. 

The initial conversion price is HK$19.82, which represents a premium of approximately 0.05 percent over the last closing price on Tuesday.