The logistics and trading unit of Sinopec, Sinopec Kantons Holdings, is planning to raise US$353 million through a stock offer. This was confirmed by a deal term sheet seen by Reuters last Thursday.
According to the document, the company would be offering 412.5 million new shares between the price range of HK$6.36 and HK$6.63 per share. This has an equivalent discount of as much as 7% from the trading price at Thursday's close. The highest price would place the deal at a total price of HK$2.73 billion.
The sale was conducted through a top-up placement, with the controlling shareholder of Sinopec Kantons would sell existing shares and would be subscribing to the same number of newly issued shares at the same price issued under the name of Sinopec Kantons Holdings.
The joint bookrunners of the deal are Bank of America Merill Lynch, JP Morgan and Nomura Holdings according to the term sheet.
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