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15 December 2017 By Pete Sweeney Follow @petesweeneypro

The highly-indebted Chinese property developer is raising $1 bln by selling discounted shares. Following a nearly 400 percent rise in the stock price, it’s a good time to tap the market for cash. Given Chairman Sun Hongbin’s deal history, he probably will need to do so again.

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Property developer Sunac China Holdings said on Dec. 15 it would sell HK$7.8 billion ($1 billion) of new shares via a top-up placement to raise proceeds for general working capital.

The 251.5 million shares, representing around 6 percent of existing share capital, will be sold to Chairman Sun Hongbin's Sunac International Investment Holdings at HK$31.1 each, an 11.9 percent discount to the stock's previous closing price. Sun intends to sell these shares to third-party investors.

The company's stock price opened down 10 percent, at HK$31.65, in early trading following the announcement. Sunac shares have gained 380 percent over the last 12 months, but are down 25 percent from a record high in October.

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