Hong Kong-based sourcing giant Li & Fung Ltd. said Tuesday it expects to raise about 2.68 billion Hong Kong dollars, or $345.8 million, after selling just over 3 percent of its shares.
Li & Fung said it sold 120.29 million of its existing shares at a price of 22.55 Hong Kong dollars, or $2.91, a share, offering a more than 6 percent discount to Monday’s closing price of 24 Hong Kong dollars, or $3.10. Li & Fung said leading institutional investors in Asia, North America and Europe purchased the shares.
The company said the proceeds will primarily be used for “general working capital purposes” and “continued business expansion.” Li & Fung recently became the primary global apparel and accessories sourcing agent for Liz Claiborne Inc. and is on the hunt for acquisitions. Last year, the company bought Van Zeeland handbags in the U.S. and Germany-based Miles Fashion.
“It is prudent for us to further enhance our strong balance sheet to take advantage of any new opportunities that may arise in this economic environment and to guard against market volatility,” stated William K. Fung, group managing director of Li & Fung Limited.
The placement was organized and underwritten by Citigroup Global Markets Asia Limited and Goldman Sachs (Asia) L.L.C.