ZTE Corp, one of China’s top telecom equipment makers, plans to raise 13 billion yuan (US$2.1 billion) via private share placement, with the funds to be used for 5G mobile network technology development.
The company said on Wednesday that it plans to issue up to 687 million A-shares to some investors, who will not exceed 10 in number, Reuters reports.
The move will help support the Chinese firm’s plans to invest 42.9 billion yuan over three years in 5G technology.
The pricing and issuance date of the new shares will be determined later as the company awaits the securities regulator’s approval for the fund-raising plan.
According to a stock-exchange filing, ZTE will use 9.1 billion yuan of the share placement proceeds for 5G technology research and product development, and the remainder as working capital.
“The company expects that 2018 to 2020 will be a crucial period for the formulation and industrialization of the global standard for 5G technology,” ZTE said in the filing.
ZTE and its rival Huawei Technologies are key players in China’s push to be among the world’s first to build a 5G network by 2020, Reuters noted.
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