Sunac China Holdings Ltd (01918.HK) saw its stock price surge by 5.37% during Friday's intraday trading following the announcement of a significant share issuance aimed at repaying onshore bonds. This move is part of the company's ongoing efforts to restructure its debt and improve its financial position.

According to the company's statement, Sunac China has entered into a subscription agreement with Bright Bene (BVI) Investment Limited, a special purpose vehicle. Under this agreement, Sunac will allot and issue a total of 754,468,943 new shares under its general mandate. The net proceeds from this share disposal, estimated to be around RMB 5.6 billion, will be utilized to repay relevant onshore bonds.

This private placement is a crucial step in Sunac's broader initiative to raise equity capital and restructure its onshore debt. The move has been well-received by investors, as reflected in the significant stock price increase. However, the company has advised shareholders and potential investors to exercise caution, noting that the completion of this share issue is not guaranteed.