china-resources-land-braves-the-market-with-placement

China Resources Land braves the market with placement

The Mainland property developer raises just over $500 million at a 6% discount, while the two developers that issued new shares last week see their share prices tumble.

By Anette Jönsson

May 08, 2007

China Resources Land CRL yesterday completed the top-up share placement of just over $500 million that it launched after the end of trading Monday, but the fact that it took almost 24 hours to finish the deal suggests it is getting harder to convince investors about the benefits of buying property stocks at current levels. The shares were priced at the bottom of the indicated range.

This was the third placement by a Mainland real estate developer in three days and brought the total issuance from this sector since last Thursday to $1.5 billion. Such a sizeable supply of new paper appears to have given rise to some property stock fatigue and it obviously didnÆt...

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