Xtep surges 20pc as two bonds raise $1b

Finance | Reuters and Staff reporter 16 Jun 2021

Shares of Xtep International (1368) once surged 30.4 percent to an intraday high of HK$11.58 yesterday after the Chinese sportswear maker unveiled that it would raise about HK$1 billion by issuing two tranches of convertible bonds to Chinese private equity firm Hillhouse Capital.

Xtep International closed 20.72 percent higher at HK$10.72. This means that Nicholas Tse Ting-fung, who bought 5 million Xtep shares for HK$12.4 million, or HK$2.48 per share in October last year, will gain HK$41.2 million.

The first issue of a HK$500 million convertible bond pays a 1.8 percent coupon per annum and matures in 2027.

The bonds can be converted into up to 54.36 million shares - or a 2.03 percent stake - in Xtep at HK$10.244 each.

The second is a US$65 million (HK$507 million) zero-coupon convertible bond issued by Xtep Global, a subsidiary of Xtep International which owns the K-Swiss and Palladium brands.

Meanwhile, shares of CGN Power (1816) fell 1.74 percent to HK$1.69 after a report of a leak at the Taishan power plant in Guangdong province run by a joint venture between French power group EDF and China General Nuclear Power Group.

The Hang Seng Index fell 203.60 points, or 0.71 percent, to 28,638.53 as tensions between Beijing and the West soured investor sentiment after G7 leaders called for Hong Kong to keep a high degree of autonomy.

The top gainer among blue chips yesterday was Geely Automobile (0175), growing by 4.76 percent to HK$23.10. Zeekr, a new premium electric vehicle brand launched this year by Geely, has sold out of deliveries for this year, chief Executive An Conghui said yesterday.

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