Join our crew and become one of the 110,533 members that receive our newsletter.

rongsheng heavy industries

China Rongsheng to Issue $180 Million in Convertible Bonds

Rob Almeida
Total Views: 10
July 31, 2013

rongsheng heavy industriesRongsheng Heavy Industries announced in a stock filing today their plan to issue HK$1,400,000,000 (USD $180 million) in convertible bonds in an effort to help subsidize the growth of their offshore engineering business.

China’s largest privately-held shipbuilder has been seen by many as a symbol of the decline of the shipbuilding industry over the past few years, one that has hit Rongsheng particularly hard.

The bonds are to be issued at an initial conversion price of HK$1.00 per share which represents a premium of approximately 21.95% over the last closing price of HK$0.82 per share as quoted today on the Hong Kong Stock Exchange.

Rongsheng estimates net proceeds from the issuance of these bonds to be approximately HK$1,379,000,000.

Earlier this month, Rongsheng appealed to the Chinese government and their biggest shareholders for financial help after laying off a huge swath of its workforce, delaying payments to suppliers, and warning of a net loss for the first half of 2013.

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 110,533 members delivered daily straight to your inbox.