Telecommunications-equipment maker China Sci-Tech Holdings has announced its second rights issue in four months by proposing to raise $230 million through the sale of rights shares on a one-for-one basis.
China Sci-Tech yesterday said it would issue not less than 1.15 billion rights shares at 20 cents each. This represented a 35 per cent discount to the last traded price of 31 cents.
The company last launched a two-for-one rights issue in June and raised $61 million.
That issue, also priced at 20 cents a share, was completed in late July.
China Sci-Tech said the net proceeds of the proposed issue would be $223 million of which $80 million would be used to look for new investment opportunities such as information technology companies or developing a cyber commercial centre with partners.
It would use $35 million for loan repayment with the balance for working capital.