Chinese Sportswear Brand Li Ning's Shares Tumble 8% On Fundraising Plan

Chinese sportswear brand Li Ning's shares tumbled 8% to "close at their lowest in a decade after the troubled Chinese sportswear brand announced moves to raise" up to $220M in an "open offer of shares," according to Waldmeir & McGee of the FINANCIAL TIMES. The Hong Kong-listed company plans to offer up to 652 million shares at HK$2.60 ($.13) each -- a discount of 22% on their "undisturbed" price -- "on the basis of five shares for every 12 existing shares." The company said it had "laid a solid foundation" for a new phase of growth that will begin next year, "and the money raised would be used to support that growth and to 'optimise capital structure.'" Founder & Chair Li Ning said, "Next year will mark the beginning of the group’s growth phase." Investors "appeared unconvinced," with shares tumbling as much as 11.7% on Wednesday "as they resumed trading from a suspension implemented" last Friday (FT, 12/17).