A major Chinese distant-water fishing firm is looking to raise cash to pay for its recovery from the COVID-19 pandemic.
China Ocean Group is issuing HKD 98 million (USD 12.5 million, EUR 11.1 million) worth of new shares, which will comprise a 16.1 percent stake of the company’s total issued share capital when completed.
Listed in Hong Kong, China Ocean said it was badly impacted by the pandemic because its distant-water vessels were unable to get their licenses approved and renewed due to Chinese officials unable to perform international inspections due to the country’s lockdowns.
The company has named six subscribers for the share issuance, among them several investors from Hunan province and two seafood distributors.
The biggest portion of the funds – HKD 60 million (USD 7.7 million, EUR 6.8 million) – are “intended to be applied for the repayment of borrowings,” with the rest going to “set/prepare sail for fishing vessels and as general working capital of the group,” a China Ocean note to investors said.
Hunan Xinyan Investment Company Limited and Hunan Yuankun Investment Company are both listed among the six new subscribers, as are two individuals based in Guangdong province and described as seafood traders.
COFCO Finance, part of the state-controlled conglomerate of the same name, has a 5 percent stake in the company.
