China MeiDong Auto drops most in 12 months on discounted share sale

China MeiDong Auto Holdings

05/01/2023 02:24

** Shares of China MeiDong Auto Holdings Ltd  1268.HK  fall
as much as 11.9% to HK$15.10, mark biggest intraday pct decline
since January 2022
    ** Stock sinks to the lowest since Dec 8 and is
second-biggest pct decliner in the Hang Seng Composite Index
 .HSCI  
    ** The Chinese automobile dealer plans sale of 68 mln new
shares to major shareholder in a top-up share placement, raising
HK$1.02 bln ($130.46 mln) for business expansion, acquisitions
and for working capital  urn:newsml:reuters.com:*:nFWN33P16V
    ** Shares will be issued at HK$15.05 apiece, or at a 12.2%
discount to Wednesday's close of HK$17.14 each
    ** Says the major shareholder will buy the new shares
following sale of the same amount of existing shares at the same
price to third-party investors
    ** The Hang Seng Commerce & Industry Index  .HSNC  advances
2.9% and the Hang Seng consumer goods and services index
 .HSCGSI  rises 1.9%
    ** The Hang Seng Composite Index  .HSCI  and the Hang Seng
Index  .HSI  both jump 2.1%
    ($1 = 7.8182 Hong Kong dollars)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))