Kingboard to raise $2.72b from 8.7pc discounted sale of Kingboard Laminates shares

Kingboard (0148) announced on Wednesday a block trade to dispose of up to 130 million shares in its subsidiary Kingboard Laminates (1888) at HK$21 per share — an 8.7 percent discount to the prior close — with expected net proceeds of about HK$2.72 billion for general working capital.

The placement covers approximately 4.15 percent of Kingboard Laminates' total issued share capital as at the announcement date and will be conducted on a best-effort basis through a placing agent to independent places.

Following the completion of the sale, Kingboard said its direct and indirect interest in the share capital of Kingboard Laminates will decrease from around 71.1 percent to 66.95 percent.

The company expects the sale to enhance its overall liquidity, thus providing additional financial resources to support its ongoing operations and future development.

It also said that the sale will improve its trading liquidity of Kingboard Laminates shares in the market and broaden its shareholder base, and it anticipates a wider and more diversified shareholder base, together with a larger public float, can promote more active trading in Kingboard Laminates shares, benefiting the company’s overall market profile.

Gloria Leung