HK-listed steel maker Tiangong falls most in nearly 15 mths on discounted share sale

Tiangong International

05/05/2021 03:20

** Shares of China's high speed steel maker Tiangong
International Co Ltd  0826.HK  drop as as much as 11.9% to
HK$4.30, their biggest intraday fall since Feb 2020
    ** Stock second most actively traded by turnover and the
third biggest percentage decliner on the Hong Kong bourse, set
for second consecutive session of decline
    ** Jiangsu-based co plans sale of 200 mln new shares to
major shareholder Sky Greenfield Investment Ltd, raising HK$844
mln ($108.7 mln) to expand an industrial park in Thailand,
develop new products and for working capital (https://bit.ly/3nUL1rJ)
    ** The new shares will be issued at HK$4.22 each, or 13.5%
discount to Tuesday's close of HK$4.88 each
    ** Says Sky Greenfield will buy the new shares on completion
of sale of the same amount of existing shares at the same price
to third party investors
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
slips 0.2%
    ** The Hang Seng China enterprises index  .HSCE  climbs 0.5%
 and the benchmark index  .HSI  gains 0.4%
    ** Stock hits lowest since April 28
    ** As of last close, the stock had surged 41% this year 
    ($1 = 7.7683 Hong Kong dollars)

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