Esprit received applications for 4.98bn shares, which was 7.7 times the 646m shares  available for subscription

Esprit received applications for 4.98bn shares, which was 7.7 times the 646m shares available for subscription

Hong Kong-based clothing brand Esprit has seen its share price increase after its rights issue was more than seven times oversubscribed.

The company received applications for 4.98bn shares, which was 7.7 times the 646m shares originally available for subscription. As a result, the retailer's share price rose 2.78% to HK12.58 at the close of trading today (26 November).

The remaining 15.5m excess rights shares have been allocated to qualifying shareholders on a pro rata basis by reference to the number of excess rights shares they applied for, according to a company filing.

Last month, Esprit said it would allow existing shareholders to buy one share at HK8 for every two they already own to raise up to HK$5.2bn (US$670m) to fund its transformation plan.

Esprit's former chairman Michael Ying more than doubled his stake in the company from 4.8% to 10.33% earlier this month.