New World China to raise up to HK$5.33 bln via rights issue

Published: 11 Oct 2009 19:50:51 PST

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Oct. 12, 2009 (China Knowledge) - New World China Land<0917>, the Chinese property arm of Hong Kong-based New World Development<0017>, announced Friday that it plans to raise between HK$4.89 billion and HK$5.33 billion via a rights issue.

The Hong Kong-listed company plans to issue between 1.92 billion and 2.09 billion shares in the one-for-two rights offering at HK$2.55 apiece, said the company in a statement.

The proceeds from the issuance will be used for repurchase of convertible bonds, property investment and general working capital, according to the statement.

BOC International and HSBC Holdings PLC<0005><HBC> will be the joint underwriters for the deal.

New World Development, which holds a 70.8% stake in New World China, said that its net profit for the year ended Jun. 30, 2009 dived 78% from a year earlier to HK$2.08 billion.