By Bingyan Wang
Shares of Agile Group Holdings Ltd. and CIFI Holdings (Group) Co. slumped Tuesday morning after the two property developers said they plan to raise money via share placement to refinance offshore debt.
The Hong Kong-listed shares of Cifi Holdings slid as much as 15%, widening year-to-date losses to over 70%. Agile Group’s shares dropped 16.4%, bringing year-to-date losses to 44.4%.
CIFI Holdings said earlier Tuesday it is seeking to place 840.0 million shares at HK$1.14 each to raise 946.0 million Hong Kong dollars (US$121.6 million). The price is at a discount of around 14.3% to Monday’s closing price of HK$1.33.
Also on the same day, Agile Group said it plans to place 268.5 million shares at HK$2.32 each to raise HK$617.2 million Hong Kong dollars (US$79.3 million). The pricing is at a 17% discount to Monday’s closing price of HK$2.81.
The move from the two companies comes after Beijing announced a series of easing measures for liquidity-stressed developers and hinted that more support for both the supply side and demand side would be unveiled next year.
Shares of Agile Group were last down 16.7% at HK$2.34, while CIFI Holdings was 14.3% lower at HK$1.14. Most developers listed in Hong Kong were also down, with Longfor Group Holdings Ltd. dropping 5.5% and Guangzhou R&F Properties Co. falling 5.6%.
Hong Kong’s broader Hang Seng Index was 1.0% lower.
Write to Bingyan Wang at [email protected]
