On 12 May 2020, CR Gas announced to place a total of 90 million shares at a price of HK$40.81 per share in the capital market through placing of existing shares and top-up subscription for new shares. The placing price represented a 7.14% discount to the closing price in the last trading day of the announcement and a 4.69% discount to average closing price of the past 5 trading days. The shares placed represented approximately 4.05% of the issued share capital of the Company and approximately 3.89% of the Company’s issued share capital as enlarged by the Subscription. Goldman Sachs was the sole placing agent.
The Company intended to raise total net proceeds of approximately HK$3.67 billion through placements which were oversubscribed with subscribers consisting of various long-term global institutional investors, indicating the positive view of the capital market towards CR Gas’ development outlook.
The placement will further strengthen the financial position of CR Gas and the proceeds raised will be used for acquisition of more downstream city gas distribution businesses in Mainland China and replenishment of general working capital of the Company. The placement resolves the issue of low public shareholding of CR Gas and has a positive impact on enhancing its stock trading activity.