Xinyi: sale of USD 25 million new shares to fund expansion

China autoglass manufacturer Xinyi Glass Holdings Ltd. plans to sell about HKD 191 million (USD 24.5 million) worth of new shares to a substantial shareholder, to raise funds for the expansion its gla…

China autoglass manufacturer Xinyi Glass Holdings Ltd. plans to sell about HKD 191 million (USD 24.5 million) worth of new shares to a substantial shareholder, to raise funds for the expansion its glass production. Xinyi Glass said in a statement on 26 May 2006 that its substantial shareholder, Goldbo International Ltd., would buy 61.7 million new shares at HKD 3.10 each after Goldbo and another shareholder, Tung Ching Sai, completed their sales of a total 66.28 million existing shares at the same price to third-party investors. The proceeds will be used to fund part of the company“s initial HKD290 million investment to set up production facilities for the manufacture of ultra-clear photovoltaic glass products, the company said. Xinyi shares rose 22.2% over the four weeks to 24 May 2006 when they closed at HKD 3.30 prior to a trading suspension. Trading resumed on 26 May 2006. Fund managers were quoted on 25 May as saying that Xinyi was looking to raise up to HKD 388 million worth of new shares, including an option, to fund its production expansion.