Debt-ridden property developer Yuzhou to raise $1.5 billion
Reuters
Nov 1, 2024 1:19 AM
(Reuters) - Shanghai-based property developer Yuzhou Group said on Friday it will raise around HK$12.01 billion ($1.54 billion) while it is in the middle of restructuring its offshore debts.
The company will issue 5.65 billion existing shares at HK$2.127 apiece.
Yuzhou — one of the many property firms hurt by a slowdown in China's real estate market — offered a restructuring plan in August 2023, a year after it defaulted on dollar bond payments.
China is presently trying to support the housing market by rolling out multiple incentives such as the recent fund boosts for housing projects.
In an effort to prop up share prices, the Chinese developer has also proposed to implement a share consolidation. Every ten issued shares worth 10 Hong Kong cents each would be consolidated into one share valued at HK$1.
($1 = 7.7739 Hong Kong dollars)
(Reporting by Sneha Kumar in Bengaluru; editing by Alan Barona)