Yuexiu Property's Rights Issue was More Than 8 Times Oversubscribed, and the Investors were Full of Confidence in the Company's Prospect
Release Date:2014-11-07 11:07:23
On October 16, Yuexiu Property announced the results of Rights Issue. In aggregate, the investors subscribed about 14.4 billion Right Shares, which was 9.32 times (this number excludes the pro rata Right Shares subscribed by large shareholders) that could be actually subscribed by the market. In other words, the Rights Issue was 8.32 times oversubscribed. This indicates that the majority of shareholders and investors highly endorse Yuexiu Property's strategic fund-raising move by way of Rights Issue and are full of confidence in the future development prospect of Yuexiu Property.

The Company’s strategic move to raise capital by way of Rights Issue is aimed at strengthening its capital base, and providing it with greater financial flexibility. Against the backdrop of prevailing market conditions, the Company is actively preparing for investment opportunities which may arise in the second half of this year or early next year. It will focus especially on its home turf, namely Guangzhou and the Pearl River Delta region to pursue such opportunities, so as to sustain its healthy sales growth. The fact that the Rights Issue was more than 8 times oversubscribed indicates the investors’ endorsement of the Company’s strategy and operational preparation, as well as their confidence in the Company’s prospects.

Yuexiu Property has received full support from the Group for the Rights Issue this time. Yuexiu Enterprises (Holdings) Limited has subscribed fully for the 1.528 billion Rights Shares for a total consideration of approximately HK$ 1.91 billion.

Board Chairman Zhang Zhaoxing said, “I would like to express gratitude to our shareholders and investors for their support, which has made Yuexiu Property’s financing activity highly successful, and has allowed the Company to strengthen its capital base and enhance its financial flexibility. Adhering to the strategies of “Home Base in Guangzhou and Expansion Nationwide” and “Returning to First- and Second-Tier Cities”, the Company will actively identify suitable investment opportunities, replenish land reserves and expand business scale by acquiring lands at home and abroad. Such a move will underpin the Company’s solid and sustainable growth. We will strive for rapid development and greater returns to our shareholders, to repay our shareholders and investors for their high degree of trust and support.”