HK Stock Market Move | XTEP INT'L(01368) opens low by nearly 3% with plans to raise nearly 1 billion Hong Kong dollars through rights issue and convertible bonds issuance, to strengthen the DTC strategy for the main Xtep brand.

XTEP INT'L (01368) opened nearly 3% lower, and as of the time of writing, it has fallen by 2.8% to 5.9 Hong Kong dollars with a turnover of 5.01 billion Hong Kong dollars. In terms of news, XTEP INT'L announced that it plans to sell 90.909 million existing shares in an old-to-new manner at a price of 5.5 Hong Kong dollars per share, representing a discount of about 9.4% compared to last Friday's closing price of 6.07 Hong Kong dollars. The company also proposed to issue 500 million yuan of convertible bonds, with an initial conversion price of 6.325 Hong Kong dollars, which can be converted into a maximum of 79.0514 million shares. The announcement stated that the net proceeds from the rights issue and bond issuance are approximately 985 million Hong Kong dollars, and the company plans to use it to further develop the XTEP main brand and Saucony's direct-to-consumer (DTC) business model; further enhance Saucony's brand promotion and product portfolio; and to support general business purposes as operating capital.