Sunac turns to equity to reduce debt

Sunac China Holdings has taken advantage of its skyrocketing share price to execute a HK$4 billion $516 million top-up placement that has raised much-needed capital to reduce its leverage after a series of high-profile acquisitions that have greatly expanded its landbank. 

The Tianjin-headquartered property developer sold 220 million shares overnight on Monday and was met with decent demand topping $1 billion according to sources familiar with the situation.

The strong uptick in Sunac’s share price meant the deal needed a relatively deep discount range of 5% to 8.8% to the stock’s HK$20.1 close, equivalent to HK$18.33 to HK$19.10 per share. The...