China United Travel to raise RMB 393.6 mln for 4 projects

Jul. 16, 2009 (China Knowledge) - China United Travel Co Ltd<600358>, a subsidiary of China International Travel Service Ltd, today announced that it plans to issue between 50 million and 80 million shares at prices not less than RMB 4.92 apiece to raise up to RMB 393.6 million, sources reported.

The proceeds from the private issuance will partly be used to develop four tourism projects in Jiangning District, Nanjing that will cost RMB 264 million in total. The remaining funds will be used to repay back loans of RMB 60 million.

One of the four projects is a hot spring project that will cost RMB 108 million and will be capable of receiving 300,000 tourists a year. The hot spring project covers a land area of 53 Mu and has a potential floor area of 10,600 square meters. The construction cycle is 18 months, but the start date is not yet clear. 

China United Travel, a Nanjing-based tourism firm with a registered capital of RMB 432 million, is engaged in the development of tourism properties and high-speed hydrofoil passenger transportation.