China Merchants Property's shares dive on share sale plan

Shares of China Merchants Property Development Co Ltd (CMPD)<000024><200024> plummeted by the 10% daily limit after disclosing the secondary offering plan.

CMPD's shares closed at RMB 13.75 on Monday, extending this year's loss to 66%.

The Shenzhen-listed real estate developer, announced yesterday it would issue up to 450 million A-shares, or 48.5% of the company's total outstanding A-shares, to both institutional and individual investors on Nov. 26 at RMB 13.2 apiece, according to its filling with the Shenzhen Stock Exchange.

The company expects to raise as much as RMB 5.94 billion via the share offering, about 74.25% of the previously planned RMB 8 billion, to help fund 14 commercial and residential projects, involving a total investment of RMB 17.142 billion.