Reborn in America, I'm serious about making money.
Chapter 150 Another Rights Issue to Raise Funds
In 1996, Zhang San decided to raise funds through a rights issue for the Lihua Hotel again. This time, the funds were still used to acquire some of his own properties. Although the property prices had not yet reached their peak, Zhang San was not willing to wait any longer. Moreover, with the rise in property prices, more people were willing to participate in the rights issue.
Since last year, the Lihua Hotel has performed exceptionally well, with its budget hotel business in mainland China growing beyond expectations and property prices in Hong Kong also rising.
The share price of Lihua Hotel has reached HK$27.1, which can be said to be a very rapid increase. Lihua Hotel issued an announcement before the New Year.
"In the first half of this year, the company will continue to acquire properties and is currently negotiating with property owners. This time, the company will acquire properties worth HK$15 billion... After the negotiations are completed, the company will conduct a rights issue to raise funds."
Upon the release of this announcement, the share price of Lihua Hotel surged to HK$28 that same day, reflecting the general optimism among Hong Kong residents regarding the property.
As for why Zhang San chose this time to conduct a rights issue, there are, of course, reasons.
It is generally believed that Hong Kong's stock market is still at a low point, while real estate prices are still rising, and there is a lot of foreign capital inflow, such as HK$20 billion from the island nation.
It was only due to the devastating earthquake that the company was able to divert a large amount of US dollars back to disaster relief and factory restoration. Now, with a rights issue at a low price to raise funds for real estate acquisitions, this is a positive development and naturally attracts attention.
Five days into the new year, Lihua Hotel announced that it had completed negotiations to acquire three commercial buildings, 500 luxury homes, four villas, and ten shops.
The announcement shows that a deposit of HK$4.5 billion has been paid. The rights issue has been approved and will be conducted at 95% of Friday's closing price, with a rights issue of 3 shares for every 10 shares held. Friday's closing price was HK$29, and the rights issue price is HK$27.55.
On Friday, the market capitalization of Lihua Hotel reached HK$725 billion at the close of trading. After the financing, its market capitalization will approach HK$100 billion, and Hong Kong will have another company with a market capitalization exceeding HK$100 billion.
Over the weekend, the Lihua Hotel became the focus of Hong Kong media attention. Numerous media outlets reported on the hotel's major financing of HK$206 billion.
At the hotel entrance, reporters, microphones in hand and cameras flashing, vied to interview hotel managers and other relevant personnel. The Lihua Hotel's exterior was magnificent and imposing, its glass curtain walls gleaming in the sunlight, attracting the attention of passersby. Inside, the spacious and bright lobby was bustling with people, some busy chatting, others watching news reports on large screens.
The media reports were detailed and vivid, with reporters obtaining information through various channels to provide a thorough analysis of the background and impact of this massive financing.
On social media, the topic of Lihua Hotel's financing quickly gained traction, sparking widespread discussion and attention. People were excited and curious about the news, speculating about Lihua Hotel's future development plans and potential economic benefits.
This weekend, the Lihua Hotel undoubtedly became the hottest topic in Hong Kong. The news of its financing swept through the city like a powerful whirlwind, attracting attention and anticipation from all sectors.
This news story, like a pebble thrown into a lake, created ripples in the global media landscape. Major media outlets reported on it extensively, and its popularity spread rapidly. Journalists scrambled to gather more information to satisfy the public's curiosity. On social media, discussions surged, with people expressing their opinions and perspectives. In an instant, the news became a global focal point, sparking widespread attention and discussion.
Following global media coverage, Lihua Hotel became the brightest star in the entire stock market.
On Monday, the stock price of Lihua Hotel broke through HK$30. Those who held shares rushed to deposit money to participate in the rights issue, and the rights issue was completed on Monday.
This was a remarkable day in the history of the Hong Kong stock market. The HK$206 billion rights issue was completed in a single day, a feat that, like a boulder thrown into a calm lake, stirred up towering waves. The stock market was instantly ignited; the trading floor was bustling with activity, and the flashing numbers and lines on the screens resembled a grand light show.
Meanwhile, global media attention was focused on this event. Reporters busily covered this historic occasion, with television, newspapers, and websites all publishing it as a headline. The news spread rapidly, attracting widespread attention from global investors. People were filled with curiosity and anticipation regarding the success of this massive fundraising, speculating about its potential impact on the Hong Kong stock market and the global economy.
Behind this astonishing figure lies the enthusiasm and confidence of countless investors, as well as their high recognition of Hong Kong's financial market. On this day, the Hong Kong stock market became the focus of global attention, demonstrating its strong financing capabilities and vitality. This event will also become a significant milestone in the development of the Hong Kong stock market, injecting new momentum and vitality into the future capital market.
The acquisition of the Lihua Hotel property sparked a boom in Hong Kong's real estate market. Investors' confidence in the market surged, and they turned their attention to real estate projects in the Hong Kong area.
The price increase of 10% in Hong Kong real estate has ignited a previously calm property market, attracting more buyers and investors.
On the streets and alleys, people were buzzing about the Lihua Hotel real estate acquisition. Developers seized the opportunity to launch a series of new properties, sales offices were packed with people, and homebuyers eagerly placed orders, afraid of missing out on this wave of price increases.
This new year is destined to be a joyous one, and those who own property are naturally very happy, as rising property prices this year indicate an increase in their wealth.
Some are happy while others are sad; many people have money but can't buy suitable housing.
A Hong Kong tycoon once said, "When buying property, the most important things are three: First, a good location; second, a good location; and third, still a good location."
This is also why real estate speculators in Hong Kong don't operate alone, but in groups, which is related to the extremely high housing prices in Hong Kong.
Moreover, group speculation in real estate can also spread the risk; a house costs millions or tens of millions of yuan, so they are very careful, because if they lose money, they will lose everything.
Some of the older members, having experienced the real estate crisis of those years, were naturally more cautious.
Amidst the bustling Lihua Hotel property purchase frenzy, another little-known fact is that Zhang San is clearing out his properties, starting from the New Territories and moving eastward to sell them off.
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