PANVA Gas Holdings Ltd, a piped gas distributor in China, plans to raise HK$703 million (US$90 million) from selling new shares.

The company will issue as many as 184 million shares at HK$4 apiece by offering one new share for 10 existing ones, Panva Gas, in which Hong Kong & China Gas has a stake, said in a statement to the Hong Kong Stock Exchange yesterday. The funds will be used to pay debt. Town Gas, as Hong Kong & China Gas is known, bought a 44 percent stake in Panva Gas in December. The two companies own 60 gas projects in 55 cities and 12 provinces across China.

Panva posted a loss of HK$256.3 million last year because of higher fuel costs, Bloomberg News reported. "The company's current financing strategy is to improve financial liquidity in order to pursue future growth opportunities," Panva Gas said in the statement.

Source:佚名