Hong Kong: Hong Kong-listed Sinotrans announced that it has signed an agreement with Deutsche Bank AG’s Hong Kong branch to issue 357.4m new shares at a price of HK$4.8 per share to raise about HK$1.71bn. The placing shares represent approximately 20% of the existing shares of the company.
The net proceeds from the placing are intended to be used as the company’s general working capital to fund the group’s business development.
Sinotrans said the company continues to pursue its business development strategy of enhancing its integrated logistics operation through expansion of its network coverage and service offerings. The issue of new shares offers the company a good opportunity to optimize its capital structrure. [17/07/14]