By P.R. Venkat
Fuyao Glass Industry Group is planning to raise 4.31 billion Hong Kong dollars ($555.13 million) in net proceeds through a share placement to expand its business.
The company is placing a total of 101.13 million H-shares at an issue price of HK$42.90 each, Fuyao said late Sunday.
Shares are being placed a 4.98% discount to the last traded price of HK$45.15 each.
Fuyao said that it "would like to broaden the H-Shareholder base and increase the proportion of H-shares in the company's equity structure, so as to further attract more international reputable investors with strategic value and improve equity structure of the company".
The company said that it expects China's automobile industry to recover and rebound this year and the funds raised will be used to expand its photovoltaic glass business and also repay debt.
UBS AG. is acting as the placement agent for the deal.
Write to P.R. Venkat at email@example.com
(END) Dow Jones Newswires