XCMG plans share placement

XCMG Construction machinery Company plans to raise CNY 5 billion (US$ 732 million) through a private share placement. A filing with the Shenzhen Stock Exchange said the placement was to finance new projects and obtain advanced technology.

A statement from XCMG said it will issue between 50 million and 165 million shares in a private placement to 10 unnamed investors.

Funds will be used for research and development and engine, component and information systems. XCMG believes the investment will add nearly CNY 2.3 billion (US$ 337 million) in annual profits once the projects are completed.