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

Reuters2021-07-20

** Shares of electrical appliance components maker Tongda Group Holdings Ltd 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 ()

** 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 eases 0.4%, and the composite industry index tracking industrials falls 1.1%

** The Hang Seng China Enterprises Index drops 0.6%, and the benchmark index slips 0.4%

** As of last close, stock down 20.2% this year

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
6