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China's Li Ning plans US$1.4 billion share sale for international expansion

China's Li Ning plans US$1.4 billion share sale for international expansion

People walk past a store of Chinese sports products brand Li Ning in Beijing, China on Apr 15, 2021. (Photo: Reuters/Tingshu Wang)

HONG KONG: Chinese sportswear group Li Ning Co said on Thursday (Oct 28) it planned to sell HK$10.5 billion (US$1.35 billion) worth of new shares to raise capital for international expansion and for investment in newly launched product categories.

The Beijing-based company plans to sell 120 million new shares, or 4.59 per cent of the enlarged share capital, to its major shareholder Viva China Holdings, it said in a filing to the Hong Kong bourse.

The new shares will be issued at HK$87.50 apiece, or a 8.09 per cent discount to Wednesday's close, with proceeds also to be used for investment in re-engineered infrastructure and supply chain systems, for brand building and working capital.

Viva will buy the new shares on completion of the sale of the same amount of existing shares at the same price to third-party investors. Its stake in Li Ning will be diluted to 10.37 per cent from 10.87 per cent after the deal.

Source: Reuters/zl

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