Oct. 25, 2011 (China Knowledge) - Suning Appliance Co Ltd<002024>, one of the largest electrical appliance retailers in China, announced it has received approval from the China Securities Regulatory Commission to raise RMB 5.5 billion via a private placement.

According to the share offering plan, released on Jun. 17, the Shenzhen-listed firm will issue 447 million shares at a price of RMB 12.30 apiece.

Proceeds from the private placement will be used to add retail outlets, develop logistics, upgrade technology and replenish working capital, said Suning Appliance.

Board Chairman Zhang Jindong intends to spend RMB 3.5 billion to subscribe 285 million shares in the offering, bringing his shareholdings in Suning Appliance from 27.9% to 30.05%.

New China Life Insurance is one of the other two subscribers in the private placement with an investment of RMB 800 million, said a person familiar with the matter.