[ET Net News Agency, 15 January 2020] Guotai Junan International Holdings Limited
(01788) said the company proposes to raise a gross proceeds of up to approximately
HK$3,752 million, by way of a rights issue on the basis of one rights share for every
three existing shares at a price of HK$1.45 per rights share.
GTJA Securities has agreed to underwrite the issue of not more than 54 million
underwritten shares. China Tonghai Securities has agreed to underwrite the issue of not
more than 158 million underwritten shares. GJHL, which holds 68.48% of the total number of
shares in issue of the company, will apply for and pay for the GJHL committed shares,
being all of the 1.76 billion rights shares to be provisionally allotted to GJHL pursuant
to the rights issue.
The subscription price represents a discount of approximately 2.68% to the closing price
of HK$1.49 per share on the last trading day. The estimated net proceeds will be
approximately HK$2,780 million. The company currently intends to use the net proceeds: (i)
as to approximately 33% for loans and advances to customers, (ii) as to approximately 33%
for market making and investment in debt securities, (iii) as to approximately 15% for
debt repayment, (iv) as to 10% for the group's general working capital and (v) as to 9%
for infrastructure development and regional expansion in Southeast Asia. (RC)