Haidilao eyes US$301m share sale for credit facilities repayment
It previously announced it will be shutting down or suspending the operations of around 300 restaurants.
Haidilao International Holding is planning to sell HK$2.35 billion (approx. US$301 million) of new shares in a top-up placing to raise capital for repayment of credit facilities.
In a filing, the hot pot giant said it intends to sell 115 million new shares to major shareholder SP NP at HK$20.43 apiece.
SP NP is expected to buy the new shares on completion of sales of the same amount of existing shares at the same price to third investors.
The raised capital will also be used to enhance supply chain management and product development, and for working capital and general corporate purposes.
Haidilao announced last week it will be shutting down or suspending the operations of around 300 restaurants, following its aggressive expansion in the past two years.