NEW YORK - Citic Securities, China's biggest brokerage by market value, will raise as much as HK$27.1 billion (S$4.7 billion) selling stock to 10 investors, including sovereign wealth funds in Kuwait, Singapore and Malaysia.
GIC and Temasek Holdings will be among the group of investors buying, when the company sells as many as 1.1 billion new Hong Kong-listed shares at HK$24.60 each, according to a statement to the Hong Kong Stock Exchange posted on Monday.
That's a 19 per cent discount to Monday's closing price. Citic shares have risen 3.6 per cent this year. Shares of Citic Securities gained 0.8 per cent in Hong Kong as of 9.56am local time.
The group of investors buying Citic shares also includes a China Cinda Asset Management-backed fund, the Kuwait Investment Authority and a unit of Malaysia's Khazanah Nasional.
Additional investors include Yunfeng Financial Holdings, backed by Alibaba Group Holding's billionaire founder Jack Ma, and funds run by Fidelity Worldwide Investment, Och-Ziff Capital Management Group and Harvest Global Investments. One buyer was not identified by name.
Citic said it plans to use about 70 per cent of the money to develop "flow-based" operations, including margin financing, securities lending, equity derivatives and fixed-income, foreign exchange and commodities products. It will use about 20 per cent of the funds to develop cross-border operations and for platform building, and the balance as working capital.