Country Garden Services raises $1 billion via share sale – sources

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HONG KONG (Businesshala) – Country Garden Services, the property management arm of China’s top developer Country Garden, has picked up

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HK$8 billion ($1 billion) from the sale of 150 million new shares at HK$53.35 each on Thursday, according to two sources with direct knowledge of the matter.

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The company opened the deal earlier in the day, according to a term sheet seen by Businesshala, at a 9.5% discount to the stock’s closing price on Wednesday.

The order book was completely covered, according to sources, who declined to be identified as they were not allowed to speak to the media.

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A Country Garden spokesman did not immediately respond to a Businesshala request for comment.

The number of shares represents 4.5% of the increased share capital and the sale price compared to the last trading price of HK$58.95 on Wednesday.

Trading in shares was suspended on Thursday due to accelerated book build work during the Hong Kong trading session.

The term sheet states that Country Garden Services plans to use the proceeds to generate acquisition opportunities and develop new businesses.

Its parent company, Country Garden Holdings, is the largest developer in mainland China by sales.

The property services firm has spent more than 20 billion yuan this year to acquire three rival management companies.

($1 = 7.7889 Hong Kong Dollar)

Reporting by Scott Murdoch; Additional reporting Claire Jim. Editing by Muralikumar Anantharaman and Kim Koghill

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