Hong Kong-listed gas retailer China Gas Holdings will sell 392mn new shares worth HK$11.6bn ($1.5bn) to fund its expansion in China, it said on April 22 in a stock exchange filing.  

The company plans to acquire new city gas projects in China, expand its LPG smart microgrid business and develop distributed heating operations. It will also use some portion of the funds for working capital needs. 

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“The company believes that the placing offers the company a good opportunity to raise equity for its business developments as well as to optimise its capital structure,” it said. “Further, the company believes that it will be able to enrich its shareholder base by attracting a number of high calibre investors to participate in the placing.” 

China Gas Holdings will sell the shares to its shareholders Beijing Enterprises Holdings and China Gas Group. The new shares will be issued at HK$29.75/share, representing a 9% discount to the April 21 closing price of HK$32.7/share.