Chaoda raises $229 million from primary placement

Chaoda Modern Agricultural yesterday raised HK$1.78 billion $229 million from a placement of new shares. The deal comes less than two months after the company abandoned a similar deal, which resulted in a sharp dip in the share price.
 
The base deal consisted of 337 million new shares that were offered at a fixed price of HK$4.60 a share, providing a 14% discount to the last trading price of HK$5.35. Due to high levels of demand, the deal was upsized to 388 million shares, which increased the final deal size to $229 million from the original $200 million.

A fixed-price deal was chosen because it provides comfort to investors in volatile...