China's Wuling Motors poised for worst day in over 3-wks on discounted share sale

Wuling Motors Holdings

22/01/2021 03:24

** Shares of China's electric vehicles and automotive
components maker Wuling Motors Holdings Ltd  0305.HK  fall as
much as 12.4% to HK$2.40, the lowest since Jan. 15, on course
for second session of decline
    ** Stock last down 9.1%, on track for worst day since Dec.
29; among the 30 most actively traded by turnover and among the
top percentage decliners of all listed companies on the Hong
Kong bourse 
    ** Wuling plans sale of 223 mln new shares to major
shareholder Dragon Hill Development Ltd, raising HK$550.81 mln 
($71.1 mln) for R&D of new electric vehicles, repayment of short
term borrowings and for future investments  urn:newsml:reuters.com:*:nFWN2JW16O
    ** The new shares will be issued at HK$2.47 each, or 9.85%
discount to Thursday's close of HK$2.74 each
    ** Dragon Hill will buy the new shares following 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 
slides 0.3%
    ** The Hang Seng China enterprises index  .HSCE  falls 1.3%,
and the benchmark index  .HSI  slips 1%

($1 = 7.7520 Hong Kong dollars)

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