CHINA Resources Land Ltd, a Hong Kong-based developer controlled by the Chinese government, is seeking as much as HK$4 billion (US$513 million) from a share sale, according to a term sheet sent to fund managers.

The company is selling 400 million new shares, or 10.7 percent of its enlarged share capital, at HK$9.81 to HK$10.02 each, according to the document.

The price range values the company at a four percent to six percent discount to its closing price of HK$10.44 yesterday before the stock was suspended from trading in the afternoon, Bloomberg News reported.

China Resources Land is the third Hong Kong-listed mainland Chinese developer in the past week to sell additional shares to institutional investors who hope tightening of the real estate industry will benefit the nation's larger developers by reducing competition.

Shimao Property Holdings Ltd, a Shanghai-based developer, and its controlling shareholder, billionaire Xu Rongmao, said yesterday it raised HK$5.5 billion from a May 4 share sale. The sale was the largest secondary stock offering in Hong Kong this year.

Greentown China Holdings Ltd, the largest developer in China's Zhejiang Province, sold US$2.3 billion worth of shares May 3.

China Resources Land plans to use proceeds from the sale to acquire assets from its parent, to expand its land bank and pay land premiums.

Source:佚名