China

Zhuhai Port Plans to Raise RMB 1.48 Bln Through Private Placement

Summary:

  • Zhuhai Port Co.,Ltd. (000507.SZ) plans to raise RMB 1.48 billion through a private placement of new shares, according to stockstar.com.
  • The shares of Zhuhai Port will continue to be halted from trading.

Why It Matters:

  • Zhuhai Port will issue 158 million new shares to 10 investors. Among the 10 investors, Zhuhai Port Group will purchase at least 25.83% of the newly issued shares and its total stake in the listed company Zhuhai Port will not exceed 30% after the deal.
  • The money raised will be used to update port facilities and to acquire boats for a variety of purposes during the next two years. The company estimates that the throughput of the port will be boosted significantly.
  • Zhuhai Port is located next to Hong Kong. The Chinese government plans to increase the economic ties between Hong Kong and the nearby mainland area . It is believed that Zhuhai Port is ikely to benefit from this policy, the details of which are likely to be revealed in the next two weeks.