Agile Group Holdings Shares Slump Amid Plan for Share Placement
Shares of Agile Group Holdings experienced a sharp decline on Tuesday morning following the announcement that the property developer intends to raise funds through share placement. This initiative aims to refinance debt and ensure the smooth operation of the company.
The Hong Kong-listed shares of Agile Group plummeted by 17.4%, resulting in year-to-date losses of 55.65%.
Agile Group revealed on Tuesday that it is in the process of seeking placement for 346.0 million shares at HK$1.13 each. This move intends to raise net proceeds of 387.2 million Hong Kong dollars (US$49.7 million).
The share placement price represents a discount of approximately 18% compared to Monday's closing price of HK$1.38.
The decision from Agile Group comes at a time when the Beijing government has implemented a series of measures to alleviate pressures within the real estate market. These measures particularly focus on supporting home buyers and developers facing liquidity concerns.
This announcement resulted in a decline for numerous developers listed on the Hong Kong stock exchange, despite a recent rally prompted by news that major Chinese cities, including Beijing and Shenzhen, have committed to enhancing housing supply to meet market demand.
Consequently, Agile's competitor, Seazen Group, witnessed a drop of 1.7%, while Longfor Group Holdings experienced a decline of 1.0%. On the other hand, Hong Kong's broader Hang Seng Index saw a modest increase of 0.7%.
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