HK-listed Vobile Group falls most in nearly 12 weeks on discounted share sale

Vobile

31/01/2023 02:06

** Shares of software service solutions provider Vobile
Group Ltd  3738.HK  drop as much as 11.4% to HK$4.10 - on track
for their biggest daily pct fall since Nov. 10 if losses hold
    ** Stock hits the lowest since Jan. 17; second biggest pct
decliner in the Hang Seng Composite Index  .HSCI  and fifth
biggest pct loser on the Hong Kong bourse
    ** Co plans to sell 114.13 mln new shares, or 5.11% of
enlarged share capital, to third party investors, raising
HK$470.20 mln ($60 mln) 
    ** Says proceeds will be used for repayment of
interest-bearing borrowings to further position balance sheet
for strategic growth and financial flexibility
    ** Says new shares will be issued at HK$4.12 apiece, an 11%
discount to Monday's close of HK$4.63  
    ** The Hang Seng sub-index tracking information technology
firms  .HSCIIT  jumps 1.7% and the Hang Seng Tech Index
 .HSTECH  surges 1.3%
    ** The Hang Seng Composite Index  .HSCI  rises 1% and the
Hang Seng Index  .HSI  climbs 0.9%
    ($1 = 7.8366 Hong Kong dollars)
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))