China

Joincare Pharmaceutical Plans to Raise RMB 2.85 Bln via Non-Public Offering

Summary:

  • Joincare Pharmaceutical Group Industry Co. (600380.SS) plans to issue 300 million shares at RMB 9.49 per share to raise RMB 2.85 billion through a nonpublic offering, according to Sohu.
  • Shares of Joincare Pharmaceutical will resume trading on November 25.

Why It Matters:

  • Joincare Pharmaceutical plans to use the funds for two projects: medicine production lines in Haibin City and projects in Zhuhai which offer comprehensive health services to clients.
  • The company expects the fund raising will assist the company to improve its capital structure and strengthen its leading position in the pharmaceutical sector.
  • Shenguang Securities suggests that the two new projects can help the firm explore new revenue generators.