Sinofert Holdings, the fertiliser unit of mainland oil trader Sinochem Corp, has offered to sell US$300 million new shares to fund an asset acquisition from its parent, sources said.
The 400 million shares were offered at HK$5.78 to HK$6 each, representing an up to 7.67 per cent discount to the stock's last closing of HK$6.26, according to a sale document sent to institutional investors.
Citi is the bookrunner on the deal. Sinofert shares have almost doubled since the beginning of the year.
'Market sentiment has been supported by abundant liquidity. Investors are still keen on shopping around in Hong Kong,' said a portfolio manager at a fund house.
'Investment bankers are knocking on our door for equity share sales all day long. The names [on offer] are not only second tier or third-tier firms, but also red chips,' he added.
The sale document did not outline Sinofert's plan for the proceeds but fund managers indicated they would likely to be used for the long-awaited asset acquisition from its parent company, Sinochem Group.