XCMG plans share placement
By Steve Skinner30 December 2009
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.