China's healthcare group Gushengtang falls on discounted share sale

GUSHENGTANG HOLDINGS

22/03/2023 02:13

** Shares of Chinese healthcare services provider
Gushengtang Holdings Ltd  2273.HK  fall as much as 7.2% to
HK$53.10
    ** Stock sixth most actively traded by turnover on the Hong
Kong bourse
    ** Guangdong-based co says it plans to sell 10.40 mln new
shares to major shareholder Action Thrive Group, raising
HK$547.78 mln ($69.8 mln) to fund expansion of offline medical
institutions, for upgrading online healthcare platforms and
diversifying product portfolio 
    ** Issue price of HK$52.67 per share represents an 8%
discount to Tuesday's close of HK$57.25 
    ** Action Thrive Group will buy the new shares following
sales of same amount of existing shares at same price to third
party investors
    ** The Hang Seng Commerce & Industry Index  .HSNC  jumps
2.3% and the healthcare index  .HSCIH  gains 1.2%
    ** The Hang Seng Composite Index  .HSCI  rises 2% and the
Hang Seng Index  .HSI  surges 2.2%
 
($1 = 7.8481 Hong Kong dollars)

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