HK-listed China Education drops most in 4 months on discounted share sale

SDM Education group

10/01/2023 02:16

** Shares of China Education Group Holdings Ltd  0839.HK 
drop as much as 9% to HK$10.92, mark their biggest intraday pct
decline since Sept 5 
    ** Stock of the private higher education services provider
is the third-biggest pct decliner in Hang Seng Composite Index
 .HSCI  
    ** Co plans sale of 147 mln new shares, or 5.1% of the
enlarged share capital, to two key shareholders raising net
proceeds of HK$1.6 bln ($204.90 mln) for expansion of school
network and working capital purposes  urn:newsml:reuters.com:*:nFWN33U4CB
    ** Says new shares will be issued at HK$10.94 each,
representing an 8.8% discount to Monday's close of HK$12 each 
    ** Key shareholders will buy the new shares following the
sale at the same price to third-party investors in a share
placement 
    ** Hang Seng Commerce & Industry Index  .HSNC  eases 0.5%
while Hang Seng Composite Index  .HSCI  and Hang Seng Index
 .HSI  slip 0.2% each
    ($1 = 7.8085 Hong Kong dollars)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))