China's Chongqing Hongjiu hits record low on share sale plan

Chongqing Hongjiu Fruit Co

22/01/2024 03:50

** Shares of China's Chongqing Hongjiu Fruit Co Ltd
 6689.HK  drop 16.1% to HK$3.65, their lowest since debut in
September 2022, amid concerns over dilution effect triggered by
its share sale 
    ** Stock on track for the biggest one-day pct decline since
Aug 18, if losses hold, and is biggest pct loser in the Hang
Seng Composite Index  .HSCI  
    ** The Chinese fruits chain operator plans sales of HK$822.2
mln ($105.2 mln) worth of new shares to third-party investors,
raising proceeds for enhancement of fruit supply chain,
repayment of interest-bearing debts and for working capital  
    ** Co plans to sell 189 new shares, or 11.8% of the enlarged
share capital, at HK$4.35 apiece 
    ** Hang Seng Composite Industry Index, which tracks consumer
staples  .HSCICS , drops 3%, Hang Seng Composite Index  .HSCI 
falls 2.3%, Hang Seng Index  .HSI  down 2%
    ** Stock down 28% YTD 
  ($1 = 7.8175 Hong Kong dollars)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))