Anta Sports Products Ltd., a Chinese developer of sportswear, declined the most in six months after raising about HK$11.8 billion ($1.5 billion) through a top-up placement in Hong Kong, completing the city’s largest additional share sale since October 2021.
(Bloomberg) — Anta Sports Products Ltd., a Chinese developer of sportswear, declined the most in six months after raising about HK$11.8 billion ($1.5 billion) through a top-up placement in Hong Kong, completing the city’s largest additional share sale since October 2021.
Shares closed 7.4% lower at HK$100.70 on Tuesday. That’s still higher than the HK$99.18 price they were sold in the placement, which priced at a discount of 8.8% to Monday’s close.
The additional share sale is Hong Kong’s largest since Chinese car and battery maker BYD Co. raised about $1.78 billion in a share placement 18 months ago. After a busy start to the year, block sales and placements in the Asian financial hub slowed down amid an increase in volatility with equities trading.
The drop in Anta Sports share price due to the placement should be seen as a “one-off” unrelated to the company’s fundamentals, according to UOB Kay Hian analysts Shen Zhifeng and Ng Jo Yee. “The consensus focus will finally switch to improving fundamentals and the one-off sentiment shock would likely be an opportunity to accumulate shares,” they wrote in a note.
Anta Sports plans to use the proceeds for the repayment of outstanding debt and for general working capital of the group. Citigroup Inc., Morgan Stanley and UBS Group AG are the placing agents.
(Updates with closing prices in the second paragraph)
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