By P.R. Venkat

Country Garden Services Holdings Co. is planning to raise 10.42 billion Hong Kong dollars ($1.34 billion) through placement of shares, proceeds of which will be used for business expansion.

The company is planning to place 139.38 million shares for HK$75.25 each, which is a 6% discount to Monday's closing price, the property management services firm said Tuesday.

Shares will be placed to independent investors that will allow the company to broaden its shareholder base.

"The directors are of the view that the placing will strengthen the financial position and liquidity of the group and provide funding to the group for working capital and future development purposes without incurring interest costs," the company said.

Proceeds will also be used to finance potential M&A transactions, it said.

UBS, CICC and Morgan Stanley are acting as placing agents for Country Garden Services.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

05-24-21 1937ET