China's Biggest Shipbuilder Floats Billion HK$ Bourse Offering

China Rongsheng Heavy Industries to offer HK$1,000,000,000 worth of 7% convertible bonds due 2016.

The estimated net proceeds from the issue of the Convertible Bonds, after deduction of commissions and expenses, would be approximately HK$992,500,000, which will be used for working capital and general corporate purposes and repayment of loans of the Group.

The company explains that assuming full conversion of the Convertible Bonds at the initial Conversion Price of HK$1.05 per Share, the Convertible Bonds will be convertible into 952,380,952 Shares, representing approximately 13.61% of the issued share capital of the Company as at the date of this announcement and approximately 11.98% of the enlarged issued share capital of the Company. The Conversion Shares will be fully-paid and rank pari passu in all respects with the Shares then in issue on the relevant conversion date.