Li Ning seeks US$1.3 billion in fresh capital to fund overseas expansion as growth at home cools
- China’s biggest sportswear maker to issue 120 million new shares under a sale and top-up plan involving major shareholder Viva China
- Li Ning’s net profit nearly triples to US$306 million in the first half as revenues surge 65 per cent
The company proposed to issue 120 million new shares at HK$87.50 each to its major shareholder Viva China under a top-up stock issue, according to a Hong Kong stock exchange filing on Thursday. The proceeds will help fund an overseas expansion and enhance its brands and supply chain system, it added.
The top-up issue will be done at the same time Viva China places out the same number of its shares to outside investors at the same price. The price is about an 8 per cent discount to the stock’s closing level on Wednesday.
Shares of the athletic apparel producer slumped 8.2 per cent to HK$87.40 in Hong Kong, the most in three months, while the broader market slipped 0.3 per cent amid concerns about weak earnings outlook.
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The fundraising will also help strengthen the group’s financial position and to broaden Li Ning’s shareholder base to facilitate its future growth, as well as to increase the liquidity of Li Ning shares, the company added in the filing.
