Shares of Guolian Securities (HKG:1456, SHA:601456) surged as much as 18.68% on Thursday after the Shanghai Stock Exchange approved the company's application to issue shares to fund its acquisition of a controlling stake in Minsheng Securities.
According to a disclosure on September 27, Guolian Securities plans to issue shares to acquire 99.3% of Minsheng Securities, a major securities firm in China. The Chinese securities company had previously announced in August its plans to acquire a controlling stake in Minsheng for 29.5 billion yuan ($4.1 billion).
To partially fund the deal, Guolian Securities will raise 2 billion yuan ($280 million) by selling 250 million shares to 45 subscribers. The approved share issuance paves the way for the company to complete the acquisition, which is expected to significantly expand its business operations and market share in the securities industry.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.