Vanke Co Ltd, a major property company in China, intends to raise as much as CNY 15 billion ($2.2 billion) by offering a private placement of it’s shares. This capital increase is aimed at financing 11 real estate projects and increasing its capital reserves. The company stated in a filing to the Shenzhen Stock Exchange that it aims to sell up to 1.1 billion A-shares, which is equivalent to 9.46% of its total share capital, to up to 35 potential investors.
Vanke Co Ltd, a major property company in China, intends to raise as much as CNY 15 billion ($2.2 billion) by offering a private placement of its shares. This capital increase is aimed at financing 11 real estate projects and increasing its capital reserves. The company stated in a filing to the Shenzhen Stock Exchange that it aims to sell up to 1.1 billion A-shares, which is equivalent to 9.46% of its total share capital, to up to 35 potential investors.
According to Vanke, the new share issue will provide additional financial assistance to ensure the seamless execution and timely completion of its real estate projects. Property developers in China are facing increased pressure due to heavy debt and the sector is suffering as a result. State banks have intervened by providing funding support to help mitigate the housing crisis. Vanke, which is ranked as China’s second largest property developer by sales and is listed on both the Shenzhen and Hong Kong stock exchanges, recently saw its property services subsidiary, Onewo, launch Hong Kong’s largest initial public offering in.
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