The parent of Hong Kong-listed Legend Holdings, China’s top PC maker, has begun a share placement which is expected to generate about $120m. The funds have been earmarked for research and development and the establishment of a new science and technology park in Beijing.
The Chinese Academy of Sciences sold 130 million shares through placing agent Goldman Sachs Asia at an 11.7% discount to Legend’s record close on Wednesday. The stock has risen 79% in the past month following the release of strong results for the fiscal year through March 31. The prestigious academy’s stake will be reduced to 60.7% from 68.2%.
Legend chairman Liu Chuanzhi said equity financing had not been considered because the company is not short of capital, with about $77m in cash. He also said the stake was sold at this time because of the attractive share price and because we want to inject liquidity into the market. Our share price surged too fast recently because there is a shortage of scrip.
