China's payments firm Yeahka drops most in near 2 years on convertible bond issue

Yeahka

05/07/2022 03:52

** Shares of Yeahka Ltd  9923.HK  drop as much as 17% to
HK$18.60, set for the biggest daily pct decline since August
2020, as the Chinese payment technology services provider plans
to issue a 5-year bond that is convertible into company shares 
    ** Stock hit the lowest since June 2; the biggest pct
decliner in both Hang Seng sub-index on information technology
firms  .HSCIIT  and Hang Seng Composite Index  .HSCI , and is
the third biggest decliner on the Hong Kong bourse.
    ** Guangdong, China-based firm plans to issue $70 mln 6.25%
convertible bonds due 2027, raising proceeds for expanding
cross-border e-commerce foreign exchange/RMB collection and
payment business, and for research and development.  urn:newsml:reuters.com:*:nFWN2YL0A0
    ** Says the bonds are convertible into 23.55 mln shares, or
4.95% of the enlarged share capital, at HK$23.32 each. That
represents a 4.1% premium over Monday's close of HK$22.4 per
share. 
    ** The Hang Seng sub-index tracking information technology
firms  .HSCIIT  rises 1.2%, the Hang Seng Composite Index
 .HSCI  gains 0.8% and the benchmark Hang Seng Index  .HSI 
climbs 0.9%.
    ** As of last close, the stock had fallen 13.2% this year.

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