Dec. 28, 2010 (China Knowledge) - Kangmei Pharmaceutical Co Ltd<600518>, one of the top ten listed traditional Chinese medicine makers, on Dec. 27 said it has received approval from the China Securities Regulatory Commission to raise up to RMB 3.5 billion through a rights issue today.

In a statement filed with the Shanghai Stock Exchange, the company will issue three new shares for every ten existing shares, and around 508 million new shares are expected to be sold at a price of RMB 6.88 apiece.

The firm said the rights issue will be completed on Jan. 6, 2011 and its shares will resume trading on the same day.

GF Securities Co Ltd<000776> has been assigned as the lead underwriter for the rights issue, sources reported.