New World Development readies up to HK$25 billion rights issue, Bloomberg reports

Hong Kong developer New World Development has appointed banks to arrange a rights issue that could raise as much as HK$25 billion (S$3.19 billion), Bloomberg News reports. Trading in the company's shares was halted on Friday pending an announcement of inside information.

Hong Kong property developer New World Development has appointed banks to prepare for a rights issue that could raise as much as HK$25 billion (S$3.19 billion), Bloomberg News reported on Friday, citing people familiar with the matter.

Trading in New World's shares was halted on Friday pending the release of inside information by the company, according to a pre-market filing to the Hong Kong exchange.

The planned capital raising comes as New World, one of Hong Kong's largest developers by market capitalisation, navigates a challenging property market and heavy debt load. A rights issue of this size would be one of the largest by a Hong Kong developer in recent years.