News of Share Sales Sinks Stock Prices of Developer Sunac and Its Services Arm

Hong Kong-listed Chinese real estate developer Sunac Co. Ltd. saw its shares fall 13% to close at around HK$15 ($1.90) on Monday after the company and its property services arm announced they intend to raise billions of Hong Kong dollars through a private share sale.

Sunac said in a Sunday exchange filing that the firm has already entered a private placement agreement to raise nearly HK$5.1 billion by selling 335 million new shares, which account for 7.19% of the firm’s existing total shares and 6.7% of the total after the new shares are issued.