China's GOME Retail drops most in 15 months on discounted share sale

GOME Retail Holdings

28/06/2022 04:31

** Shares of China's home appliance retailer GOME Retail
Holdings Ltd  0493.HK  fall as much as 16.5% to HK$0.38, their
biggest intraday pct drop since March 2021
    ** Stock sinks to the lowest since June 16 and is the
biggest pct decliner in the Hang Seng Composite Index  .HSCI 
and is the seventh-most actively traded by turnover 
    ** The Beijing-based household appliance chain operator
plans sale of 1.96 bln new shares to two major shareholders,
raising HK$776.5 mln ($99 mln) net proceeds to repay debt and to
expand its online and offline dual-platform business 
 urn:newsml:reuters.com:*:nFWN2YE0UH
    ** The new shares will be sold at HK$0.40 apiece, or a
12.09% discount to Monday's close HK$0.455 each
    ** Major shareholders will buy the new shares on completion
of sales of the same amount of existing shares at the same price
to third party investors
    ** The Hang Seng Commerce & Industry Index  .HSNC  falls
1.8% and Hang Seng consumer goods and services index  .HSCGSI 
slips 0.2%
    ** The Hang Seng Composite Index  .HSCI  eases 1% and the
benchmark Hang Seng Index  .HSI  falls 1.1%
    ** As of last close, stock down 31.1% this year

    ($1 = 7.8469 Hong Kong dollars)

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