Country Garden Services raises $1 billion via share sale - sources

HONG KONG (Reuters) -Country Garden Services, the property management unit of China’s top developer Country Garden, raised

HK$8 billion ($1 billion) from the sale of 150 million new shares at HK$53.35 each on Thursday, according to two sources with direct knowledge of the matter.

The company launched the deal earlier in the day, according to a term sheet seen by Reuters, at a 9.5% discount to the stock’s closing price on Wednesday.

The order book was fully covered, according to the sources, who declined to be identified as they were not permitted to speak to the media.

A Country Garden spokesperson did not immediately respond to a Reuters request for comment.

The number of shares represents 4.5% of enlarged share capital, and the selling price compared to the last traded price of HK$58.95 on Wednesday.

Trading in the shares was suspended on Thursday as the accelerated book build was under way during the Hong Kong trading session.

Country Garden Services plans to use the proceeds for acquisition opportunities and to develop new businesses, the term sheet said.

Its parent company, Country Garden Holdings , is mainland China’s largest developer based on sales.

The property services firm has spent has spent more than 20 billion yuan this year to acquire three rival management companies.

($1 = 7.7889 Hong Kong dollars)

Reporting by Scott Murdoch; additional reporting Clare Jim. Editing by Muralikumar Anantharaman and Kim Coghill