China Rongsheng Heavy Industries announced yesterday its plan to issue Convertible Bonds in an aggregate principal amount of HK$1,400,000,000 (approx. $180 million) that will be used for working capital and general corporate purposes, in particular, to support the Group’s strategic development in the offshore engineering business.
The initial Conversion Price is HKS1.00 per Share, which represents a premium of approximately 21.95% over the last closing price of HKS0.82 per Share quoted on the Stock Exchange on 31 July 2013; and a premium of approximately 21.07% to the average closing price of approximately HKS0.83 per Share as quoted on the Stock Exchange for the five consecutive trading days up to and including 31 July 2013.
The estimated net proceeds from the issue of the Convertible Bonds, after deduction of commissions and expenses, would be approximately HKS 1,3 79,000,000.
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RSHI, August 1, 2013