Li Ning raises equity by €1.16bn for international expansion and other purposes

Li Ning Company said it is planning to sell 120 million new shares worth a total of HK$10.5 billion (€1.16bn-$1.35bn) to raise funds for its international expansion, which has not been easy until now, and for investments in new product categories. The proceeds would also be used for the establishment of re-engineered infrastructures, supply chain systems, brand building and working capital. The proceeds of the sale, which would dilute the equity by 4.59 percent, would be the Chinese company’s major shareholder, Viva China Holdings. Viva would then sell the same amount to other shareholders at the same price, diluting its own stake from 10.87 percent to 10.37 percent. The new shares would be priced at HK85.50 each, representing a discount of 8.09 percent on the closing price on the Hong Kong Stock Exchange prior to the announcement.