Li Ning eyes $7.8b from placement

Mainland sportswear brand Li Ning (2331) yesterday launched a HK$7.83-billion top-up placement. The blue-chip company was reported by IFR to be selling 88 million shares in the range of HK$87-HK$89 each, representing a 6.5-8.6-percent discount on yesterday's closing price of HK$95.2.

Viva China Holdings (8032), the investment arm founded by chairman Li Ning, which is the major shareholder, will sell the existing 88 million shares to the buyers and subscribe the equivalent amount of new shares from the brand later, according to sales documents.

Li Ning's shares have soared about 80 percent from the beginning of this year, and it touched a monthly high on Tuesday at HK$98. The firm could also benefit from President Xi Jinping's "common prosperity" campaign, according to Goldman Sachs.