China's largest builder, Country Garden Holdings, has turned to the stock market to raise money after government initiatives to support the real estate market led to a massive increase in the company’s share price. the value of the real estate market decreased significantly in 2022 over that in the previous years, according to GlobalData.
Country Garden Holdings is selling stock at a discount of 18% to raise HK$3.9 billion ($500 million). The company's Country Garden Holdings dollar bonds will yield profits because a portion of the proceeds will be used to repay offshore debt.
Country Garden Holdings' Share Price Movement
As officials prepared to ease the financing crisis in the Industry and expectations of relaxation of the COVID-19 restrictions, the equity index of Chinese builders increased by almost 60% in November 2022, with Country Garden doubling.
According to a stock exchange filing on November 15, 2022, Country Garden is selling 1.46 billion shares for HK$2.68 each. The stock exchanged hands only for HK$1 at the end of October 2022. On November 15, 2022, the shares were down 0.9% in Hong Kong, trading at HK$3.23.
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