BUZZ-China's iDreamSky falls most in 5 months on discounted share sale

Reuters07-24

** Shares of Chinese games developer iDreamSky Technology Holdings Ltd drop 8.8% to HK$2.28, on track for the biggest one-day pct decline since Feb. 19 if current losses hold

** Stock sinks to the lowest since July 8, and on track for a second session of decline

** Co plans to sell 119.95 mln shares, representing 7.09% of the enlarged share capital, to third-party investors, raising HK$257.7 mln ($33.00 mln) to fund research and development of products, overseas distribution and for working capital

** The new shares will be issued at HK$2.15 apiece, a 14% discount to Tuesday's close of HK$2.5

** The Hang Seng Commerce & Industry Index eases 0.7%, the Hang Seng Composite Index on information technology firms falls 0.8% and the Hang Seng Index slips 0.6%

** Stock up 8.2% YTD ($1 = 7.8086 Hong Kong dollars)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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