Tencent-backed China Ruyi trade lower after raising $511 mln via new shares sales at 17.5% discount
MARKET STOCKS
Tencent-backed China Ruyi trade lower after raising $511 mln via new shares sales at 17.5% discount
MARKET STOCKS

Tencent-backed China Ruyi trade lower after raising $511 mln via new shares sales at 17.5% discount

 

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China Ruyi, a Chinese online film and gaming company whose investors include Internet giant Tencent, said it had raised HK$4 billion, or about $511 million, through the sale of new shares, according to a Hong Kong filing.

Tencent, which currently owns a 20.45% stake, will buy 500 million shares at a price of HK$1.60 each, and still hold about one fifth of the firm after the issue. Four minority investors would buy equal amounts as Tencent.

The price of HK$1.60 per share represents a discount of 17.53% to the closing price on Monday, the last trading day prior to the trading suspension. 

Some 90% of funds raised will be used for investments in its film and game businesses as the impact of the Covid pandemic weakens, it said. Ruyi’s profit fell to 790 million yuan in 2022 from 1.17 billion yuan a year earlier. Revenue fell from 2.3 billion to 1.3 billion yuan.

Tencent-backed China Ruyi trade lower after raising $511 mln via new shares sales at 17.5% discount