Update: Longyuan stock dives on news of share issue

Longyuan hopes to sell up to 1.355 billion new shares on the Hong Kong market

Roger Schederin - DN-bilder2009

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By Dominique Patton Singapore & Andrew Lee London

 Friday, May 11 2012

Updated: Sunday, November 25 2012

Shares in China Longyuan dived 11% to HK$5.21 today as investors reacted to the company’s plans to issue 1.36 billion new shares.

Hong Kong-listed Longyuan – China’s biggest wind farm developer – said on Friday that the share issue at a price yet to be fixed would help fund its wind and solar power expansion at home and abroad.

However investors were spooked by the move, which came “out of the blue”, according to one analyst, who asked not to be named.

The company said in a briefing that it wanted to improve its capital structure. However, the analyst notes that its gearing is not high and would not warrant such a move.

“There’s no real Log in to read complete article.

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