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Chinese broker Guotai Junan raises $2.1 bln in HK offering-source
April 3, 2017 / 1:45 AM / in 8 months

Chinese broker Guotai Junan raises $2.1 bln in HK offering-source

HONG KONG, April 3 (Reuters) - Guotai Junan Securities Co Ltd, China’s third-largest brokerage by assets, raised $2.1 billion in a rare fixed-price share offering that was the biggest such sale in Hong Kong in six months, a source with direct knowledge of the deal said on Monday.

The Shanghai-listed company offered 1.04 billion new shares at a fixed price of HK$15.84 each, putting the total deal at HK$16.5 billion ($2.12 billion). The shares were originally offered at a discount of 25 percent to Guotai Junan’s closing price in Shanghai on March 24, but a decline in the shares last week narrowed that discount to about 23 percent.

A fixed-price share offering is unusual, with most deals setting an indicative range before deciding on the final pricing, depending on demand.

Guotai Junan did not immediately respond to a Reuters request for comment on the share sale. (Reporting by Elzio Barreto; Editing by Stephen Coates)

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