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China Poly to raise $1.4b via share sale

(Agencies)
Updated: 2010-03-23 09:05
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SHANGHAI: China Poly Real Estate Group Co, the country's second biggest property developer by market value, plans to raise up to 9.6 billion yuan ($1.4 billion) through a private placement of shares to fund expansion.

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China Poly plans to sell as many as 700 million shares to select institutional investors, and will use the proceeds to fund 12 real estate projects, the company said in an exchange filing.

Chinese developers are increasingly turning to capital markets for fundraising as the government tightens property lending to cool the country's red-hot real estate market.

China Poly will sell the shares at no less than 17.92 yuan per share, while its parent Poly Group has agreed to buy 100 million to 1.2 billion yuan worth of the new shares, according to the statement.

China Poly, which competes with bigger rival China Vanke and China Overseas Land, estimated in January that its profit jumped by around 50 percent in 2009, helped by a boom in property sales.

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