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Monitor maker eyes 6b yuan in placement

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China's BOE Technology Group, a personal computer monitor component maker listed in Shenzhen, said it planned to raise as much as six billion yuan from a private share placement to fund a new production line and repay bank loans.

BOE plans to sell between 300 million and 850 million A shares for at least 5.47 yuan apiece, the company said.

The minimum price represented a 30 per cent discount to the stock's closing price yesterday of 7.85 yuan.

The Beijing-based firm will spend 2.2 billion yuan of the proceeds to build a 4.5-generation thin film transistor-liquid crystal display (TFT-LCD) production line, which requires an investment of 3.11 billion yuan. The company cited an increasing shortage of small- and medium-sized displays.

TFT-LCDs are used in television screens, flat panel displays, mobile phones and projectors.

BOE also plans to use US$300 million of the funds raised to repay debts and 182 million yuan to increase liquidity. It had 10.8 billion yuan of debt as of the end of June.

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