Xinjiang-based Guanghui Energy Co. Ltd. (600256.CN) is set to be the first A-share company to issue stock through private placement, with plans to issue up to 50 million preferred shares to raise up to 5 billion yuan (US$813 million), the Shanghai Securities News reported Friday, citing a company filing.
The stocks will be placed with up to 200 qualified investors, excluding existing shareholders, the filing said.
Of the proceeds raised, 1.5 billion yuan will be used to fund the construction of a rail line project, with the remainder to supplement working capital, it said.
Dividends will vary and be paid with cash, according to the filing.
Guanghui will issue two tranches, the first within six months of approval from the China Securities Regulatory Commission, and the rest within two years.
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