Fuyao Group Glass Industries Co Ltd., China“s top autoglass maker, said on 25 February 2008 that it plans to raise more than CNY 3 billion (USD 420 million) by selling additional shares to fund expan…
Fuyao Group Glass Industries Co Ltd., China“s top autoglass maker, said on 25 February 2008 that it plans to raise more than CNY 3 billion (USD 420 million) by selling additional shares to fund expansion. Fuyao Glass plans to sell 100 million CNY-denominated A shares, equal to 10% of its current share capital, the company said in a statement to the Shanghai Stock Exchange. The share sale, which is subject to shareholder approval, would raise about CNY 3.6 billion, based on Fuyao Glass“s last share price of CNY 36.97. The actual figure will be based on the average price during the 20 trading days prior to the release of the share sale document. The shares were suspended from trading on the morning of 25 February 2008 due to the announcement. The company, based in the southeast province of Fujian, said it would use about CNY 3.1 billion of the proceeds to expand production capacity and upgrade a research centre. Any proceeds exceeding that amount would be used for operating capital, while any shortfall would be supplemented by other fund-raising means, it said. In November 2007, China“s securities regulator blocked a deal by Fuyao Glass to sell a stake of almost 10% to an investment arm of Wall Street bank Goldman Sachs for USD 119 million. Fuyao Glass also said on 25 February 2008 that its 2007 net income jumped 49% to CNY 917.21 million, as demand from domestic and international clients boosted sales and profits. The company proposed a 1-for-1 bonus share issue for 2007 plus a cash dividend of CNY 5 for every 10 shares.