HK's Tongda drops most in over 20 years on discounted share sale

Tongda group

20/07/2021 03:52

** Shares of electrical appliance components maker Tongda
Group Holdings Ltd  0698.HK  drop 37.4% to HK$0.285, on course
for their worst day since listing in December 2000
    ** Stock drops to lowest since September 2012; the biggest
percentage decliner on the Hong Kong bourse
    ** Co plans to issue 3.24 bln rights shares to existing
shareholders in the proportion of one rights share for every two
existing shares held, raising HK$752 mln ($96.77 mln) for
purchase of machinery, increase production capacity and to repay
bank borrowings (https://bit.ly/3eBXSLV)
    ** Says the rights shares will be issued at HK$0.232 apiece,
or 49.01% discount to the previous close of HK$0.455 each 
    ** The Hong Kong Hang Seng Commerce & Industry Index  .HSNC 
eases 0.4%, and the composite industry index tracking
industrials  .HSCIIG  falls 1.1%
    ** The Hang Seng China Enterprises Index  .HSCE  drops 0.6%,
and the benchmark index  .HSI  slips 0.4%
    ** As of last close, stock down 20.2% this year
    
    ($1 = 7.7707 Hong Kong dollars)
 

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