Jan 16, 2020 (China Knowledge) - ZTE Corp seeks to raise RMB 11.51 bln with the intention to fund further research and development (R&D) of 5G network as well as increase their working capital. It plans to raise the funds from a private placement of A-shares.
The Chinese telecom equipment maker said on Thursday that it planned to issue 381.098 mln A shares, or 8.27% of the total issued share capital upon deal completion, to private investors at RMB 30.21 per share.
That implies an 18.2% discount of ZTE’s A-share based on the closing price of RMB 36.92 in Shenzhen on Wednesday.
The deal will allow the company to maintain and continue its high level of investment in R&D, developing its main products and businesses, ensuring its technological competitive edge, and helping it to grow its market share in the mainstream markets, the company added.
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