China Digital issuing shares up 2.5%, ceiling price expected at HK$3.68

It was reported by sources that China Digital (0861), the subsidiary of Legend Holdings (0992), would increase issuing 2.5% shares, of which the shares to be placed to the organizational investors would increase from 77.472 mln to 79.434 mln, while the shares for IPO would increase from 8.608 mln to 8.826 mln.

Accounted like this, the net proceeds of the company excluding the over-issued shares would increase from HK$258 -316.8 mln to HK$304.5-374 mln.

The sources estimated that the increase of the issue shares might concern with the fact that China Digital had found strategical shareholders to accept large amount of shares.

As a result, the ceiling price of the company might be set at HK$3 to HK$3.68.

Related stock : (861)(992)