On July 12th, Sinofert successfully completed a placement of 400 million new shares at Hong Kong Stock Exchange, with a price of HK$5.9 apiece and net proceeds of HK$2,324.6 million. This is the first time that Sinofert raised large scale capital since its debut in the Hong Kong stock market. This will further strengthen capital support for the implementation of the Company’s development strategy.
Sinofert has been recognized for its excellent operating results amongst stockholders and investors since its debut at Hong Kong stock market in July 2005. Up to now, Sinofert’s stock price has risen to the highest level of this year- HK$6.37, from HK$1.3 at the first trading day; this is an increase of 390%. The company’s management has closely monitored the market development, and sought to initiate share placement at a high market price so as to minimize the earning dilution effect to shareholders.
On July 5th, Sinofert’s stock value rose above HK$6, and the management immediately started the financing work. With the assistance of the investment bank, the company went through several days and nights of intense work; they organized and implemented a quick placement plan, where the underwriter would purchase all the new shares. After the approval of the Board of Directors and the HKEx, an announcement was made on the morning of July 11th as well as a request for suspension of trade. On July 12th, the company successfully carried out the placement of 400 million new shares at a 1.9% premium over the average stock value of the last ten trading days, and completed this financial transaction on the same day. On July 13th, all the net proceeds were received. |