Jul. 20, 2009 (China Knowledge) - China Greatwall Computer Shenzhen Co<000066> plans to issue 110 million shares to its controlling shareholder, Great Wall Technology Company Ltd<0074>, and Shenzhen Changcheng Kaifa Technology Co<000021>, an affiliate of the latter, according to the Greatwall Computer's statement filed with the Shenzhen Stock Exchange.

Greatwall Computer hopes to raise up to RMB 1.16 billion from the share issuance. The issuance price will be RMB 9.03 per share. The shares will have a lock-up period of 36 months.

Changcheng Kaifa said in a statement filed with the Shenzhen Stock Exchang that it will acquire up to 17.72 million shares of Greatwall Computer.

The proceeds will be used to repay bank loans taken out by the firm and by China Great Wall Computer Holding Ltd, a subsidiary, according to Greatwall Computer's statement.

The placement plan is still subject to approval from shareholders and from the China Securities Regulatory Commission.

Shares of Greatwall Computer were suspended from trading on Friday morning. If the issuance is approved, the firm will announce the results of the issuance within five trading days.