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BUZZ-HK-listed GCL New Energy faces worst day in 7-1/2 years on discounted share sale

BUZZ-HK-listed GCL New Energy faces worst day in 7-1/2 years on discounted share sale

Reuters · 07/28/2022 00:43
BUZZ-HK-listed GCL New Energy faces worst day in 7-1/2 years on discounted share sale

** Shares of Chinese solar power plants developer and operator GCL New Energy Holdings Ltd SMTLF plunge as much as 23.2% to HK$0.132

** Stock to mark biggest daily pct decline since December 2014, if losses hold

** Stock hits the lowest since May 30; second-biggest pct decliner on the Hong Kong bourse

** Co says it plans to issue 2.275 bln shares to GCL Technology Holdings GCPEF, raising HK$314 mln ($40 mln)

** GCL Tech is the majority shareholder of GCL New Energy

** GCL New Energy says the shares will be issued at HK$0.138 each, a 19.8% discount to Wednesday's close of HK$0.172

** Says proceeds will be used for investment, research and development of gas, LNG and integrated energy project management business, and working capital

** Says GCL Tech will buy the shares following sales of the same amount of existing shares at the same price to third party investors

** Shares of GCL Tech fall 1.7%

** The Hang Seng Commerce & Industry Index .HSNC and the Hang Seng Composite Index .HSCI both slip 0.3%, while the benchmark Hang Seng Index .HSI eases 0.6%

** As of last close, shares of GCL New Energy had fallen 27.7% this year


($1 = 7.8491 Hong Kong dollars)


(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))