CTF SERVICES (00659) saw its stock price surge 5.24% in pre-market trading on Thursday following the announcement of a proposed issue of HK$2.22 billion in exchangeable bonds and potential disposal of Shoucheng Holdings shares.
The company revealed plans to issue 0.75% exchangeable bonds due 2028, with an issue price set at 103.00% of the principal amount. This move is seen as a strategic financial maneuver that has caught the attention of investors, potentially improving the company's capital structure and liquidity position.
Adding to the positive sentiment, CTF SERVICES disclosed that it may dispose of up to 834.9 million Shoucheng Holdings shares pursuant to the terms of the bonds. This potential divestment could provide the company with additional financial flexibility and resources for future growth initiatives, which appears to have been well-received by the market.