Reuters - Chinese Sportswear Co. Li Ning Plans to Raise $241M

Struggling Chinese sportswear brand Li Ning Co Ltd, which is backed private equity fund TPG Capital, said on Friday it plans to raise up to HK$1.87 billion ($241 million) through the sale of convertible securities, as it seeks to revive its brand in an industry plagued with bloated inventories, Reuters reported. Shares in the company slid as much as 16 percent, before they trimmed losses to close 14.7 percent down, their biggest drop since July 2011, as investors feared the fundraising, part of which would be used to buy back outdated stock, signalled that Li Ning still had a way to go to bring down inventories.

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