Sunac China Holdings (HKG:1918) plans to raise HK$1.19 billion in net proceeds through the placement of 489 million existing shares to placees, according to a Thursday filing with the Hong Kong bourse.

The placement price is HK$2.465 per share. The placement shares amount to 5.31% of the company's total issued share capital as enlarged by the deal, the filing said.

The funds from the share placement will be used for debt management.

In addition, Sunac International Investment, a company controlled by Sunac China Chairman Sun Hongbin, agreed to subscribe to 489 million new shares of the real estate developer at the same price as the placement.

Following the completion of the deals, Sunac International's stake will be diluted to 27.61% from 29.16%, while the placees will own a 5.31% stake.

Sunac China shares plunged nearly 21% in late-morning trade Thursday.

Price (HKD): $2.43, Change: $-0.65, Percent Change: -21.10%