HK-listed GCL New Energy faces worst day in 7-1/2 years on discounted share sale

GCL Technology Holdings

28/07/2022 05:43

** Shares of Chinese solar power plants developer and
operator GCL New Energy Holdings Ltd  0451.HK  plunge as much as
23.2% to HK$0.132
    ** Stock to mark biggest daily pct decline since December
2014, if losses hold
    ** Stock hits the lowest since May 30; second-biggest pct
decliner on the Hong Kong bourse
    ** Co says it plans to issue 2.275 bln new shares to GCL
Technology Holdings  3800.HK , raising HK$314 mln ($40 mln)
 urn:newsml:reuters.com:*:nFWN2Z85XE
    ** GCL Tech is the majority shareholder of GCL New Energy
    ** GCL New Energy says the new shares will be issued at
HK$0.138 each, a 19.8% discount to Wednesday's close of HK$0.172
    ** Says proceeds will be used for investment, research and
development of natural gas, LNG and integrated energy project
management business, and working capital 
    ** Says GCL Tech will buy the new shares following sales of
the same amount of existing shares at the same price to third
party investors 
    ** Shares of GCL Tech fall 1.7%
    ** The Hang Seng Commerce & Industry Index  .HSNC  and the
Hang Seng Composite Index  .HSCI  both slip 0.3%, while the
benchmark Hang Seng Index  .HSI  eases 0.6%
    ** As of last close, shares of GCL New Energy had fallen
27.7% this year

($1 = 7.8491 Hong Kong dollars)

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