By Gina Lee

Investing.com – China’s third-largest developer through a top-up share sale after a liquidity crisis led to a tumble on the developer’s dollar bonds on Wednesday.

However, Sunac’s Hong Kong shares dived 16.27% to HK$9.88 ($1.27) by 11:00 PM ET (4:00 AM GMT).

According to Bloomberg, Sunac purchased 452,000,000 shares for HK$10 each share. This is a 15% discount from their Wednesday closing. Half of the roughly 50% net proceeds will be used to repay loans, and the other half will be used in operations.

This sale is the second in two months. Through the sale of shares, and an interest in Sunac Services Holdings Ltd.’s property management unit in November 2021.

A court-ordered asset freeze on one of the company’s units earlier in the week triggered worries about the company’s financial health. Sunac reported to Bloomberg that it has reached an agreement between Sunac and a business partner on the resolution of the dispute. It is currently working with Bloomberg to withdraw court orders.

The “panic” selling by bondholders, as described by Bloomberg Intelligence analyst Daniel Fan, dragged Sunac’s 2024 notes to about 47 cents on the dollar during Wednesday’s session.

Sunac secured $2 billion to deal with its debt problems in the late 2021 through measures such as selling hotel and office projects in Shanghai and Hangzhou and placing shares. It also borrowed from its controlling shareholder. Sunac Services Holdings Ltd. was sold. The company is looking at selling the culture and tourist portfolio it has acquired in four years, for CNY65 billion ($10.21 trillion).