Haitong International to raise up to HK$1.3 billion through rights issue

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Haitong International Securities is going to raise up to HK$1.3 billion through a rights issue at a 1.6% premium to the closing price on Thursday.

Existing shareholders can subscribe three new shares at HK$0.65 apiece for every 10 equities they hold by June 12, it said in a filing, compared to the stock price of HK$0.64 last Thursday. If fully subscribed, the sales of about 2 billion new shares, or 23.08% of the total after the issuance, would provide the firm with HK$1.3 billion in fresh funds.

Haitong said it aims to enhance its capital base and financial position by improving its net current assets and cash on hand without increasing its current liabilities while strengthening its balance sheet. Around 54% of the net proceeds will be used to further develop its cross-border business, 36% to expand its margin financing business and the rest for general working capital use, it said.