<article>HNA-Caissa Travel Group Co. plans to raise as much as 8 billion yuan ($1.2 billion) through a private share sale as the Chinese tourism and catering company seeks funds to expand its cruise and global-travel services.</article>

HNA-Caissa Travel Group Co. plans to raise as much as 8 billion yuan ($1.2 billion) through a private share sale as the Chinese tourism and catering company seeks funds to expand its cruise and global-travel services.
The company’s controlling shareholder <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=HNA+Tourism+Group">HNA Tourism Group</a> and as many as nine other investors will buy the shares, HNA-Caissa said in a statement dated Monday. The funds will be used for four projects including a cruise ship sales platform and international travel package services.
A share sale raising the maximum 8 billion yuan would be equivalent to 40 percent of HNA-Caissa’s current market value of 20 billion yuan and roughly double its combined revenue in the past two years, according to data compiled by Bloomberg. Shares of the company on the Shenzhen exchange dropped by the daily limit of 10 percent Monday after trading resumed following a six-month suspension.
“The company may fall another 20 percent to 30 percent from current levels to be in line with its peer valuation as the broader market has fallen a lot since HNA-Caissa Travel was suspended in November,” Zhou Yuhua, analyst at Sealand Securities in Shenzhen, said by phone. “Meanwhile, there is a dilution effect on the share price as the size of the placement is very big.”
The stock had been halted since Nov. 9 pending a “major asset reorganization plan,” according to a company statement at the time. HNA-Caissa dropped to 24.71 yuan as of 1:09 p.m. in Shenzhen trading Monday. The Shenzhen Stock Exchange Composite Index declined 3.3 percent, extending its losses to 17 percent over the past six months while HNA-Caissa was suspended.
HNA-Caissa also said Monday in a separate statement that a plan to acquire Beijing Capital Airlines and its controlling shareholder fell through after it failed to gain the needed regulatory approvals on time.
A person answering the phone at HNA-Caissa’s investor relations office said the company had no additional comments.
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<h4 style="text-align: justify;">Bloomberg</h4>

HNA-Caissa Travel Group Co. plans to raise $1.2B through a private share sale it seeks funds to expand its cruise and global-travel services.

China: HNA-Caissa plans to raise up to $1.2b in share sale

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China: HNA-Caissa plans to raise up to $1.2b in share sale

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