Every reporter: Huang Wanyin Every editor: Wei Wenyi
Allotment of shares is becoming a "thirst-quenching artifact" for real estate companies financing .
On December 20, CIFI Holding Group (HK00884, stock price stock price HK$31.100, market value HK$10.525 billion) and Agile Group (HK03383, stock price HK$2.310, market value HK$9.730 billion) both issued announcements on allotment of funds. Reflected on the capital market , these two real estate companies also became the leading decliners in Hong Kong stocks domestic real estate stocks that day.
Since mid-to-late November, Hong Kong listed real estate companies including Country Garden , Agile, C&D International , Seazen Holdings, KWG and other Hong Kong-listed real estate companies have carried out rights issue financing. Among them, Country Garden and Agile are planning to conduct two rights issue within a month.
A-share , after the China Securities Regulatory Commission adjusted and optimized 5 measures in equity financing to support the stable and healthy development of the real estate market (hereinafter referred to as the "Five Measures for Optimizing Equity Financing"), China Fortune Land Development 3. Real estate companies or real estate-related companies such as Jinke , Greenland, Huafa , Fuxing, Shimao , Xinhu Zhongbao , Damingcheng , etc. have announced their plans to prepare non-public stock offerings to raise funds.
On December 20, many experts in the real estate industry were interviewed by a reporter from " Daily Economic News " through WeChat . They said that the financing purposes of most real estate companies in this round are mainly to develop related real estate projects, supplement working capital, and repay debts. Some real estate companies have continued equity financing in a short period of time, mainly because equity financing has certain advantages at the moment.
Citizens in Huai'an, Jiangsu, look at houses and choose houses at the sales office Visual China Figure
Equity financing has certain advantages
According to statistics from the China Index Research Institute, since November, 25 listed real estate companies have issued announcements on rights issues or private placement financing. Among them, 17 A-share companies have carried out non-public private placement financing, 38 H-share companies have raised funds through rights issue, and real estate companies such as Country Garden, Agile, C&D International and other real estate companies have completed rights issue financing.
In the announcement on December 20, CIFI Holdings intends to conditionally agree to place approximately 840 million shares at a subscription price of HK$1.14 per share, equivalent to approximately 8.77% of the total issued shares on the announcement date, and approximately 8.07% of the total issued shares expanded by subscription shares. The placement price of HK$1.14 per share is a discount of 14.29% to the closing price of HK$1.33 per share on the last trading day, and the total proceeds from the subscription are expected to be HK$957.6 million.
Agile also issued an announcement on the placement of existing shares on a first-in-first-out basis and the subscription of new shares under the general mandate. It placed 268.5 million shares at a placement price of HK$2.32 per share. The placement shares accounted for approximately 6.37% of the issued share capital on the date of the announcement. The placing price represents a discount of approximately 17.4% to the closing price of the shares of HK$2.81 per share on the last trading day, and the net proceeds from the subscription are estimated to be approximately HK$617 million.
It is worth noting that this is Agile’s second rights issue within a month. On November 18 and November 23, Agile completed the placement and subscription respectively. Its placement agent has successfully placed a total of 295 million placement shares cents at a placement price of HK$2.68 per placement share to no less than 6 qualified placees. The total net proceeds received from the subscription were approximately HK$783 million.
Country Garden (HK02007, stock price HK$2.650, market value HK$73.240 billion) also launched two rights issue plans within a month. On November 15 and December 9, Country Garden placed shares twice to reach 1.463 billion shares and 1.78 billion shares respectively, accounting for 6% and 6.88% of the issued share capital. The placement prices were HK$2.68 and HK$2.70 per share respectively, and the total proceeds were approximately HK$3.92 billion and HK$4.806 billion.
Senior analyst Xiao Yunxiang of Tongce Research Institute pointed out to the "Daily Economic News" reporter through WeChat on December 20 that continuous equity financing in a short period of time, mainly equity financing, has certain advantages, but the method of financing mainly depends on the company's equity debt structure, and choose the financing method that suits you.
The stock prices of many real estate companies have fallen.
After the announcement of the rights issue financing plan, the stock prices of many real estate companies have experienced varying degrees of callbacks and declines.As of the close of trading on December 20, Agile closed at HK$2.32 per share, which was exactly the same as the placement price, with a decline of 17.44%, leading the decline in Chinese real estate stocks; CIFI Holdings also fell by 16.54%, to HK$1.11 per share, down 2.63% from the placement price of HK$1.14.
On the trading day before the allotment plan was released, the closing price of Xincheng Development (HK01030, stock price 2.960 Hong Kong dollars, market value 20.915 billion Hong Kong dollars) was 4.06 Hong Kong dollars per share, with an increase of 39.43%. On the evening of December 19, Xincheng Development announced the completion of the placement of 560 million shares. At the close of trading on December 20, Xincheng Development closed down 9.39%, with the closing price of HK$2.99 per share falling 26.35% from before the placement.
The allotment of funds by real estate companies such as Agile, CIFI Holdings, and Xincheng Development is mainly used to repay related existing debts and for general corporate purposes. A-share listed real estate companies plan to raise funds through non-public issuance of stocks, which are mainly used for the development of real estate projects related to "guaranteeing the delivery of buildings and protecting people's livelihood", repaying debts, and supplementing working capital that meets the requirements of listed companies' refinancing policies. Liu Shui, head of research at the Enterprise Division of
Zhongzhi Research Institute, told reporters via WeChat on December 20 that policies such as the "Five Measures for Optimizing Equity Financing" clearly support the refinancing of listed real estate companies. Since then, the refinancing of listed real estate companies has reopened after several years. Listed real estate companies refinance, and most of the funds are used to develop real estate projects to "guarantee the delivery of buildings and protect people's livelihood", supplement working capital and repay debts, and some are used for asset restructuring and mergers and acquisitions. The funds used in this round of allotment financing by real estate companies are mainly used for the development of related real estate projects, supplementing working capital, and repaying debts.
such as China Merchants Shekou (SZ001979, stock price 13.36 yuan, market value 103.4 billion yuan) plans to purchase 24% equity of Shenzhen Nanyou (Group) Co., Ltd. held by Shenzhen Investment Holding Co., Ltd. , and 2.89% equity of Shenzhen China Merchants Qianhai Industrial Development Co., Ltd. held by China Merchants Investment Development Co., Ltd. through the issuance of shares. According to disclosures, the issuance price of the shares to purchase assets in this issuance is 15.06 yuan per share.
Vanke A (SZ000002, stock price 18.70 yuan, market value 217.5 billion yuan) also announced on December 19 that the first extraordinary general meeting of shareholders in 2022 has reviewed and passed Through the "Proposal on Proposing to the General Meeting of Shareholders to Grant the Board of Directors a General Authorization to Issuance of Company Shares", the Board of Directors, within the scope of authorization of the General Meeting of Shareholders and based on market conditions and the needs of the company, formulated a plan to issue overseas listed foreign shares (H shares) to non-connected persons through the placement of new shares. The issuance is still subject to approval from relevant regulatory authorities.
At the Vanke extraordinary shareholders meeting on December 16, Shenzhen Railway Group director and general manager Huang Liping said that at this point in time, carrying out equity financing will help Vanke seize future development opportunities and bring about better development. Therefore, Shenzhen Railway supports Vanke in seizing the current policy window period to support the stable and healthy development of the real estate market with practical actions and boost the confidence of the entire market. "Of course we also hope that Vanke will further combine the company's development with shareholder returns and use high-quality development to reward shareholders."
Daily Economic News
