China's Hopson drops most in nearly 13 years on convertible bonds deal

Hopson Development Holdings

09/12/2021 04:00

** Shares of Chinese property developer Hopson Development
Holdings Ltd  0754.HK  plunge 19.7% to HK$15.48, the biggest
daily percentage drop since February 2009
    ** Stock hits lowest since September 2020, on track to snap
three straight sessions of gains
    ** Biggest percentage decliner on both the Hang Seng
Composite Index tracking properties and construction stocks
 .HSCIPC  and the Hang Seng Composite Index  .HSCI  
    ** Co plans to issue $250 mln 8% guaranteed convertible
bonds due 2022, raising proceeds for refinancing its existing
indebtedness and for working capital  urn:newsml:reuters.com:*:nFWN2ST16S
    ** The bonds are convertible into 96.7 mln new shares, or
3.9% of the enlarged share capital, at an initial conversion
price of HK$20.16 each, or a 4.56% premium over Wednesday's
close of HK$19.28 each
    ** HSBC is the sole bookrunner and sole lead manager of the
deal
    ** Hang Seng Mainland Properties Index  .HSMPI  jumps 2.5%,
and the Composite Index tracking properties and construction
stocks  .HSCIPC  rises 1.6%
    ** The Hang Seng Composite Index  .HSCI  climbs 1.2% and the
benchmark index  .HSI  gains 1%
    ** As of last close, the stock had risen 7.3% this year

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