Chinese LCD maker BOE plans $9.4b offering to expand production
SHANGHAI (REUTERS) - The world's fifth-largest LCD panel maker, BOE Technology Group, said on Thursday it plans to raise 46 billion yuan (S$9.4 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 (S$6.43 billion), will offer 9.5 billion 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 in cash.
Similar to the company's refinancing programs in the past, the new capital raising has 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.