Sunac China Raised US$580 million In Top Up Placement
Sunac China proposed to issue 452 million shares at HK$10 per share. Gross proceeds from the Placement will be HK$4.52 billion, equivalent to approximately US$580 million. The equity issuance was intended to further enlarge the Company's shareholder base and optimise capital structure.
In view of the improving policy direction in the Chinese residential property sector, the Company has full confidence in the prospects of the property market, as well as the stable and healthy development of the industry.
In 2021, the Company achieved gross contracted sales of approximately RMB597.4 billion (out of which 61% are attributable to the Company, and a cash collection ratio of 90%). As of year end 2021, the Company had total cash of approximately RMB160 billion (including cash from jointly controlled entities & associates), which can fully meet short term debt obligations and project development needs.
Nevertheless, as a precautionary measure in light of the ongoing volatile market conditions, the Company decided to further enhance its cash position and ability to cope with short term market uncertainties through the equity issuance. After completion of the Placement, the Company does not have any plan to undertake further equity fundraising in the near future by way of placement of new shares or placement of existing shares in Sunac Services to the market.