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1277 Kinetic Development News Story

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Coal producer Kinetic Development drops most in four weeks on discounted share sale

BUZZ-Coal producer Kinetic Development drops most in four weeks on discounted share sale

** Shares of coal producer Kinetic Development Group 1277.HK drop 9.4% to HK$1.92, their biggest intraday pct fall since May 6

** Stock touches its lowest level since May 29

** Company plans sale of 169.51 million new shares, or 1.97% of the enlarged share capital, to third-party investors raising HK$313.6 million ($40.02 million) for procurement for the mining and transportation operations of its subsidiary in South Africa

** Proceeds will also be used for the supplement of working capital of its 51%-owned MC Mining and for equipment procurement and operating expenses of its rutile mine project in Sierra Leone

** The new shares will be offered at HK$1.85 apiece, representing a 12.7% discount to Wednesday's close of HK$2.12 each

** YTD, stock up 45.5%, benchmark Hang Seng Index .HSI down 1.1%

($1 = 7.8356 Hong Kong dollars)


(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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