New York-listed Vipshop took advantage of the rally in Chinese internet stocks to raise $550 million on Tuesday by selling a convertible bond to investors.
The deal provides the Chinese online fashion retailer with three-year funding at 1.5% and will convert into equity if the stock reaches $201.24, which represents a 40% premium to the current share price.
Shares in Vipshop have been rising steadily since last year, quadrupling in value from $25 in June to $100 in February this year and then soaring to a high of $176 last week.
This is an extraordinary gain for a company that raised just $73 million...
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