New World Development is weighing a rights issue of up to HK$25 billion, Bloomberg reported, as the Hong Kong developer’s net debt increased in the fiscal year ended June 30, 2026.
Bloomberg put the potential raise at about US$3.2 billion and reported that the controlling Cheng family planned to participate and inject fresh capital. The South China Morning Post separately reported an offering of about HK$25 billion and said the family would underwrite it. New World had not confirmed the proposed issue in its Nov. 13 filing.
That filing said trading in the company’s shares and in subsidiary-issued bonds guaranteed by New World was suspended at its request, pending an announcement about inside information. It did not describe the information or provide terms for a rights issue.
Bloomberg said New World was in talks with BOC International, DBS and HSBC. Reuters separately reported that banks had been appointed to prepare an offering; the company’s filing named no advisers.
At June 30, 2026, New World reported total debt of about HK$143.3 billion, net debt of about HK$126.3 billion and cash and bank balances of HK$16.9604 billion. During the fiscal year, total debt fell about HK$2.7 billion while net debt rose about HK$6.2 billion. The company also recorded a loss of HK$26.818 billion, linking most of it to noncash charges connected with the 11 SKIES project, including impairments and provisions.
New World’s annual results listed property sales, asset disposals and cost controls among measures to reduce debt. In an Oct. 23 settlement, New World said US$199.281 million of existing notes had been exchanged and would be cancelled; the issuer delivered US$189.31695 million in new notes. The exchanged notes included debt due in 2027 and 2028.
The South China Morning Post reported that most proceeds from a potential offering would go toward repaying debt and that further details were expected Nov. 15. New World’s filing gave no use of proceeds or timetable.
