In order to sustain Li Ning Co Ltd’s next level of growth and to optimize the company’s capital structure, the Chinese sports brand now plans to raise up a total of HK$1.69 billion (or a total of $218 million) by opening offer of shares.
According to Lining, who is Li Ning Co Ltd’s owner and chairman, he expects that this year will be the start of the group’s growth phase. He also stated that the share issue will help the company in boosting competitiveness, developing brand new products and improving its overall retail operational capability.
He is currently planning to issue a total of 651.9 million of shares in proportion of five offer shares per 12 existing shares. Each share will be issued at HK$2.60. This is much more affordable than its previous close. In fact, it represents 21.92 percent discount all in all.
Shareholders of the Li Ning Co Ltd, such as GIC, TPG, Milestone Capital Strategic Holdings Ltd and Viva China Holdings Ltd, have already given their irreversible undertakings to Li Ning Co Ltd.
The trading of the Li Ning shares was suspended last 12th of December 2014. Fortunately, it immediately resumed a couple of days after it was suspended.