HK-listed Jiumaojiu hits 1-1/2-month low on discounted share sale

Jiumaojiu International Holdings

16/07/2020 04:15

** Shares of China-based restaurants operator Jiumaojiu
International Holdings Ltd  9922.HK  fall 6.2% to HK$11.90,
their lowest since May 29
    ** Stock sixth most actively traded by turnover on Hong Kong
bourse
    ** Co plans sale of 70 mln new shares to controlling
shareholder GYH J Ltd at HK$11.99 apiece, a 5.4% discount to
Wednesday's close of HK$12.68  urn:newsml:reuters.com:*:nFWN2EM15Y
    ** "Relatively weak sentiment together with the share sale
at a discount put pressure on the stock," said Steven Leung, a
sales director at regional brokerage UOB Kay Hian
    ** The Hang Seng China enterprises index  .HSCE  falls 1.4%,
and the benchmark index  .HSI  drops 1.03%
    ** GYH will buy new shares after selling the same number of
existing shares at the same price to third party investors,
reducing its stake to 42.28% from 44.42% 
    ** Sale proceeds of HK$839.3 mln ($108.3 mln) will be used
to expand catering business and invest in raw material suppliers
    
    


($1 = 7.7533 Hong Kong dollars)

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)