China Wireless hopes for $84m
China Wireless Technologies was aiming to raise up to $84 million from a top-up share placement yesterday that will be used as general working capital, according to market sources.
The company, which provides smart phones to a wide a range of customers including China Unicom, was looking to place between 50 million and 80 million existing shares to investors at $1.05 each. The fixed price equals a 7.07 per cent discount to its latest share price of $1.13.
The selling shareholder, who sources said had not been disclosed, will then subscribe to the same amount of new shares at the same price.
China Wireless was suspended from trading on Monday afternoon and all day yesterday pending details about the placement, according to a stock exchange announcement.
One source said the placement was going well, but the final size of the offer was not likely to be determined until today.
If the maximum 80 million shares are sold, the placement will account for 20 per cent of the outstanding issued share capital, or 16.6 per cent of the enlarged share capital following the share issue.
Kingsway Financial Services was the sole bookrunner for the deal.
One source said China Wireless needed more working capital as it had received a lot of new orders.
Aside from smart phones, China Wireless supplies personal handy phone systems to telecommunications operators.
China Wireless shares have risen 31.3 per cent since it listed in December last year, but they currently trade 18 per cent below their record high of $1.378 from mid-July.
