HONG KONG, Oct 9 (Reuters) - New World China Land, the Chinese property arm of New World Development, is planning a rights issue to raise more than $600 million, three banking sources said on Friday.
Trading in shares of New World Development and New World China Land were suspended on Friday afternoon, the Hong Kong exchange said.
BOCI International and HSBC are bookrunners for the 1-for-2 rights offering, the sources said.
Officials of both companies were not immediately available for comment.
The strength of Hong Kong's equity markets has opened the window for companies to pursue stock offerings, in particular IPOs.
Rights offerings allow existing shareholders only to purchase shares at a discount, providing companies with an injection of capital typically for balance sheet or expansion purposes.
(Reporting by Fiona Lau and Michael Flaherty; Editing by Chris Lewis)
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