China Developer Plans 25% New Shares in HK

China developer plans to sell up to 25% new shares in Hong Kong, seeking to raise up to HKD 1 billion, pending for shareholder meeting approval this month. China developer Guangzhou R&F proposed new Hong Kong stock share sales, planing to raise up to HKD1.4billion.

The company said it will hold a shareholders’ meeting on Dec. 21 to seek approval for the new issue, the time and price of which are yet to be determined.

R&F’s 2018 interim report showed that the company’s operating cash flow in the first half was RMB - 8.38 billion. Besides the negative cash flow, its net debt increase to RMB 123.28 billion at the end of June from RMB 110.03 billion at 31 December 2017. The Guangzhou-based firm’s net debt to total equity ratio increased to 187.5% at 30 June 2018 from 169.6% at 31 December 2017.