The initial conversion price of HK$8.043 per share equates to a premium of around 5 per cent from CTF Services’ closing stock price on Wednesday. Upon conversion, the instrument will account for around 2.37 per cent of the company’s total issued share capital, according to a filing with the Hong Kong stock exchange.
The issuance is expected to generate HK$769 million in net proceeds, which the company said it would use to replenish working capital and settle principal and interest on bonds and loans, among other uses.
The bonds will be listed on the Vienna Stock Exchange. CTF Services said it would apply to list the new shares on the Hong Kong stock exchange. UBS and HSBC are the book runners on the deal.
One of the three listed entities of Hong Kong’s billionaire Cheng family, CTF Services had been cutting away noncore assets in recent years to focus on sectors that had high growth potential, such as logistics and insurance, Bloomberg reported in December. The company is reportedly looking to sell around US$2 billion worth of toll roads in mainland China, and was in early-stage discussions with state-owned developer Yuexiu Group as of December.
