Hong Kong-based telecoms operator PCCW is to raise up to HK$1.3bn (US$167m) via a share sale to third party investors, according to a statement to the Hong Kong stock exchange. The funds will be used to repay existing debts and for general corporate…
Hong Kong-based telecoms operator PCCW is to raise up to HK$1.3bn (US$167m) via a share sale to third party investors, according to a statement to the Hong Kong stock exchange. The funds will be used to repay existing debts and for general corporate purposes.
The company explained that it would sell 500 million new shares at HK$2.60 each, a 9.4% discount to the closing price of HK$2.87 on Monday. Following the share placement announcement, PCCW’s shares dropped as much as 10% Tuesday morning, reported Dow Jones.
According to the statement, the sale represents about 6.9% of the company’s enlarged issued share capital. HSBC and Morgan Stanley are acting placing agents. PCCW was reported as saying that its net debt had increased to HK$28.7bn at the end of June, from HK$27.2bn six months earlier.
A few days ago, PCCW sold US$500m in bonds. The issue size was raised from US$300m after investors placed more than US$6bn in orders, a source told TelecomFinance.
