Anta Sports Slides On $486 Million Sale of New Shares By Shuli Ren
China’s Anta Sports (2020.Hong Kong) has announced a sale of new shares at the wrong time.
Sentiment towards global sportswear companies was not good on Wednesday morning after he S&P 500 recorded its worst day in 2017 on Tuesday and sportswear giant leader Nike (NIKE) tumbled 3.7% in after-hours trading after its December quarter revenue came in lighter than expected.
Anta Sports said it was selling
175,000,000 new shares, thereby diluting existing shareholders by 7%, at 21.67 Hong Kong dollars each.
That’s an
8% discount to Tuesday’s close of HK$23.55. After fees, Anta Sports is
raising about HK$3.79 billion in cash, or $486 million.
Anta said it would use the proceeds to “seek business opportunities such as acquisition of, and cooperation with, international sportswear brands.”
No one is in the mood for overseas acquisitions today – Anta Sports shares have tumbled 10.6% today.
Source: Barron's Asia
http://blogs.barrons.com/asiastocks/201 ... ares-sale/
It's all about "how much you made when you were right" & "how little you lost when you were wrong"