China Poly Real Estate Group plans to raise up to 9.6 billion yuan (HK$10.8 billion) through a private placement of shares to fund future expansion.
The country's second biggest property developer by market value said it would sell as many as 700 million shares to selected institutional investors and will use the proceeds to finance 12 real estate projects in Beijing, Shanghai, Foshan, Hangzhou and Chongqing.
China Poly will sell the shares at no less than 17.92 yuan per share, while its parent China Poly Group has agreed to buy 100 million to 1.2 billion yuan worth.
This is the developer's second fund raising after it raised 8 billion yuan through a private placement in February last year.
It comes after general manager and director Song Guangju announced last month the company's intention to raise funds when she said China Poly would keep expanding and would rely on the capital market's support to do this.
The targeted investment return of the 12 projects ranges from 14.14 per cent to 34.16 per cent, according to mainland media.
China Poly Group, the parent of China Poly, is one of the 16 state-owned enterprises singled out by the central government last week as being allowed to maintain businesses in the property market.