Stocks News
- Vanke plans share sale for expansion
Date: 22-Mar-2007 Sources: (Shenzhen Daily)
CHINA Vanke Co., the nation's largest publicly traded developer, plans to sell shares to fund 31 billion yuan (US$4 billion) worth of residential projects, accelerating expansion as home sales and stock prices surge.
The company will sell shares equal to as much as 20 percent of the total before the sale, Vanke said in a Shenzhen Stock Exchange statement Tuesday.
A sale of that size would raise as much as 14.2 billion yuan, based on the company's current market value.
Property prices in Shenzhen, where the company made the most profit last year, surged 9.9 percent in February, almost double the national average.
Vanke's Shenzhen-listed shares almost tripled in the past year, making share sales a cheaper source of funding as the government raises interest rates and curbs lending.
Vanke's net income jumped 68 percent to 2.3 billion yuan last year on rising housing demand in China.
Sales surged to 16.9 billion yuan from 9.92 billion yuan. The company raised 4.2 billion yuan in December from a private placement of 400 million shares.
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