BOE Technology mulls RMB 12 bln share placement

Nov. 10, 2008 (China Knowledge) - BOE Technology Group Co Ltd<000725><200725>, one of the largest LCD producers in China, plans to raise up to RMB 12 billion through a private share placement for an LCD project in Hefei, sources reported.

According to a statement of BOE Technology on Saturday, the company plans to place around 2.7 billion to 5.5 billion new shares to up to 10 investors at the price of at least RMB 2.2 apiece. Each investor is allowed to subscribe not more than 700 million shares.

RMB 9 billion of the proceeds from the issuance will be used to fund the TFT-LCD production line in Hefei BOE Photoelectric Technology Co Ltd, in which the Beijing-based company has invested RMB 9.5 million, holding 19% stake.

The total investment of the project is estimated to be RMB 17.5 billion.

In addition, RMB 1 billion of the proceeds will be used to replenish the company's working capital, according to the statement.