Fosun International Ltd. (00656.HK) plans to raise as much as US$1.2 billion in a Hong Kong share offering, Reuters reported Monday.
The Chinese conglomerate founded by billionaire Guo Guangchang is tapping the equity market to rebuild its war chest after a series of takeovers in recent months.
Fosun plans to sell US$1 billion of new shares in an indicative range of HK$19.48 to HK$20.32 a share, a term sheet of the deal shows. The amount may increase by US$200 million if there is additional demand.
The firm is one of China’s most acquisitive private-sector companies, buying up a wide range of global assets in the last two years.
Fosun has entered into nearly US$8 billion of deals last year and this year, including a US$1.8 billion transaction last week to buy the 80 percent stake it does not already own in US insurer Ironshore Inc.
Trading of Fosun International shares was halted Monday.
The company is offering the new shares at a discount of up to 7 percent to Friday’s market close, looking to benefit from a rally that has more than doubled the price of the company’s shares since the beginning of the year.
Fosun International plans to use the proceeds from the share sale for general corporate purposes that may include potential takeovers of insurance businesses, the term sheet says.
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