China Risun to Raise HK$154 Million in Top-Up Placement; Shares Fall 19%

MT Newswires Live12-18

China Risun (HKG:1907) controlling shareholder Texson plans to sell up to 52,000,000 Risun shares at HK$3 apiece to not less than six purchasers under a placement deal, according to a Wednesday filing with the Hong Kong Exchange.

The sale will take place through agents Guotai Junan Securities (Hong Kong), Macquarie Capital, CLSA, SDICS International Securities (Hong Kong), CCB International Capital, Sheng Yuan Securities, and Haitong International Securities.

Texson will also subscribe for up to 52,000,000 new shares at HK$3 apiece to be issued by Risun.

Net proceeds from the placement, forecast to be at HK$153.6 million, will be used to repay the coking coal and fine chemical producer's bank and lease liabilities, and to fund working capital, the filing said.

The shares have a market value of HK$177.3 million based on the HK$3.41 closing price as of Dec. 17. They will comprise 1.17% of the entire shareholding of the company following the placing and subscription.

Shares plunged nearly 19% during Wednesday's morning trading.

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