Quek US$1.3 billion in a property project in China

GuocoLand to raise US$794m in share, bond issues

SINGAPORE - Property group GuocoLand Ltd, controlled by Malaysian tycoon Quek Leng Chan, said on Friday that it plans to raise up to $1.24 billion (US$794 million) in a rights and convertible bond issue to fund acquisitions.

The Singapore-listed company said in a statement that it plans to raise about $555 million from a one-for-three rights issue and a further $690 million from a convertible bond.

The company said last week that it planned to invest US$1.3 billion in a property project in China ahead of the 2008 Beijing Olympics.

The rights issue will be priced at $2.50 a share, which is a 50 per cent discount to the last traded price of $5.00 on Thursday. GuocoLand shares fell as much as eight cents, or 1.6 per cent, to $4.92 on Friday morning.

For the $690 million convertible bonds due in 2012, the company said that the price at which the conversion shares will be issued will initially be $6.216, although it will be subject to adjustment.

JP Morgan (SEA) Ltd is the sole bookrunner for the five-year convertible bond issue.

JP Morgan Securities Singapore Pte Ltd raised its call on GuocoLand to 'overweight' from 'underweight' earlier this week with a price target of $6.00.

HL Bank and Oversea-Chinese Banking Corp are joint lead managers of the issue. The convertible bonds have been fully placed with institutional investors, GuocoLand said.

Quek's Hong Kong-listed firm Guoco Group Ltd, which holds 63.9 per cent of the Singapore firm, will undertake the rights issue. -- REUTERS