New World Development Plans HK$ 25 Billion Rights Issue

Real estate developer New World Development is preparing a rights issue to raise approximately 25 billion Hong Kong dollars. The amount is equivalent to about 3.19 billion US dollars. The operation aims to strengthen the company's balance sheet in the face of high debt levels.

The Cheng family, which controls the group, has committed to underwriting the offer. HSBC is acting as the lead organizer for the fundraising. Sources familiar with the matter describe the issuance volume as substantial by current market standards.

The shares are expected to be offered at a steep discount compared to the current market price. This measure reflects the firm's urgent need to adjust its capital structure.

This move comes at a time when the Hong Kong real estate sector is seeking greater liquidity. The subscription strategy aims to attract investors to the organization's financial restructuring.