Global Bio-chem to raise HKD320 mln via placing

Global Bio-chem Technology Group (0809) said it would raise HK$320 million net through a top-up placing. LXM Ltd., a company beneficially owned by Global Bio-chem's chairman, will place 180 million existing Global Bio-chem shares at HKD1.86 each, which is 10.4 percent less than the closing price of HKD2.075 yesterday. It will then subscribe for the same number of shares at the same price. The company has an option to place a maximum of 76 million existing shares if market response warrants. Upon completion of the top-up placing and full exercise of the option, the company will have its interest in Global Bio-chem diluted to 18.8 percent from 22.5 percent. The total net proceeds raised will then increase to HKD457 million.

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