Goldwind Rises After Announcing $59 Million Share Placement

Sep 03, 2014 6:31 am ET

Sept. 3 (Bloomberg) -- Xinjiang Goldwind Science & Technology Co., China’s biggest wind-turbine maker, advanced to its highest in more than three years after it announced plans to raise 363.3 million yuan ($59 million) in a private share sale.

The stock jumped closed up 10 percent at HK$13.40 in Hong Kong today, the highest since April 2011. In Shenzhen, its shares closed up 5.8 percent at 11.62 yuan.

The company plans to sell 40.95 million shares to its management and employees at 8.87 yuan each, Goldwind said yesterday in a filing to the Shenzhen stock exchange.

This “helps align the interests of the management and participating employees with shareholders and is thus positive to the company’s future growth, given the new shares issued will be subject to a lock-up period of 36 months,” Cho Fook Tat, a Hong Kong-based analyst from Haitong International Securities Co., said today in a note.

The proceeds will be used for working capital, Goldwind said. The placement accounts for about 1.9 percent of its current outstanding shares in Shenzhen, according to Bloomberg data.

The plan is subject to approval from shareholders and the China Securities Regulatory Commission.

Goldwind’s shares resumed trading in Shenzhen and Hong Kong today for the first time since being suspended on Aug. 27.