HONG KONG, May 17 (Reuters) - Chinese drugmaker Shanghai Fosun Pharmaceutical Group Co Ltd said it planned to sell HK$2.3 billion ($295 million) worth of new shares to repay debt, replenish working capital and to fund acquisitions.
The company, which is part of billionaire Guo Guangchang’s Fosun Group, plans to sell 80.66 million H shares to third party investors at HK$28.80 apiece, representing a 7.25 percent discount to the stock’s last close, it said in a filing to the Hong Kong bourse.
The stock price had risen 31 percent so far this year, outpacing a 15 percent gain in the benchmark.
Chinese conglomerates, who are hungry for overseas purchases, have been leveraging a range of overseas assets, including listed subsidiaries, privately held affiliates and insurance cash, to raise capital from equity and bond issuance.
$1 = 7.7881 Hong Kong dollars Reporting by Donny Kwok; Editing by Amrutha Gayathri