The chairman of Country Garden Services (6098) will have a share placement for 237 million shares with a value of HK$5.06 billion.
The shares will be offered at a fixed price of HK$21.33 apiece, according to Bloomberg. The offer price represents a 10.9 percent discount to its closing price Friday in Hong Kong.
Yang Huiyan is co-chairman of Country Garden Holdings (2007), the Chinese developer founded by her father, and chairman of its property management spinoff Country Garden Services.
She's seeking to take advantage of a rally in Country Garden Services over the past week. Shares of the company are still down 49 percent in Hong Kong trading this year, giving it a market value of HK$80.8 billion.
Yang's holding company has agreed not to sell any further shares in Country Garden Services for 90 days after the transaction.
In the past six months, Country Garden Holdings had four share placements to raise a total of HK$15.43 billion to fill a hole created by cratering sales this year.
Country Garden Holdings planned to sell 1.78 billion shares at HK$2.70 per share, representing a nearly 15 percent discount from the stock's closing price a day earlier, according to the filing on December 7.
The announcement on the share placement came after the Guangdong-based developer on November 22 announced that it had placed 1.46 billion shares - representing 5.66 percent of the enlarged share capital - at HK$2.68 apiece, which raised HK$3.87 billion as Chinese authorities released a barrage of measures aimed at destressing the property market - including encouraging state-run banks to lend more to the sector and providing government guarantees for developer bond issues.
On November 15, it said that it plans to sell HK$3.92 billion worth of shares in a share placement, raising capital to refinance existing offshore indebtedness and for general working capital.
Earlier in July, Country Garden sold stock at a 13 percent discount to raise HK$2.83 billion. Some of the proceeds will be used to repay offshore debt, it said, helping spur gains in the company's dollar bonds.
This indicates that China's biggest developer by sales is pulling out all the stops to ensure it can service its debt with the industry's year-long liquidity crunch.
Country Garden has been hit by cratering sales this year. BLOOMBERG
