Nine Dragons Paper (HKG:2689) is seeking to raise as much as $2.88 billion
through top-up placing, a market source said.
The company is selling 236-250 million shares
at an indicative price range from $10.85 to $11.50,
representing a discount of 5.6-10.9% to yesterday's closing price of $12.18 each,
according to the sources.
The placement is handled by Citigroup.
Trading in the shares of Nine Dragons Paper has been suspended with effect from 9:30 a.m. today.
1504 [Dow Jones] Nine Dragons Paper (2689.HK) shares are halted from trading in the afternoon; the stock plunged 17.4% to HK$5.65 before trading was suspended. The shares' tumble took place in the afternoon as it ended midday at HK$6.68; the afternoon selloff was apparently triggered by news Standard & Poor's withdrew its 'BB' long-term corporate rating on the company. The credit rating agency said that Nine Dragons "has an aggressive debt-funded growth appetite. We withdrew the ratings because we have insufficient access to management and therefore cannot fully understand the company's strategy and financial management or assess its future credit risks." NDP hasn't said why its shares were halted. Peer Lee & Man Paper (2314.HK) suffers collateral damage and is down 5.1% at HK$4.30. (firstname.lastname@example.org) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com