The world’s fifth-largest LCD panel maker, BOE Technology, said on Thursday it planned to raise 46 billion yuan (HK$356.84 billion) in the biggest Chinese equity offering this year.
The funds will be used in the construction of high-generation panel production lines and the acquisition of shares in an existing joint venture called BOE Display Technology.
The Shenzhen-listed company, with a market capitalisation of US$5.1 billion (HK$38.56 billion), will offer 9.5 to 22.4 billion shares with an issue price of 2.10 yuan per share in a private placement.
Excluding the part set aside for the acquisition of equity in the venture, the company is expected to raise 37.5 billion yuan (HK$ billion) in cash.
The company’s shares tumbled 8.4 per cent on Thursday as its planned placement raised concerns the largest equity offering in a year could put pressure on tight liquidity conditions on the mainland.
Similar to the company’s refinancing programs in the past, the new capital raising had support from local government-owned companies, with three of them agreeing to buy a combined 20.83 billion yuan worth of shares in the placement, BOE said.