Changjiang Securities to raise RMB 3.24 bln via rights offering

Published: 04 Nov 2009 01:05:11 PST

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Nov. 4, 2009 (China Knowledge) - Changjiang Securities Co Ltd<000783> announced today that it plans to raise RMB 3.24 billion through a rights offering to boost its capital base and expand its business.

The Wuhan-based broker plans to issue three shares for each ten existing shares at RMB 6.5 apiece, said the company in its prospectus.

The company will use part of the proceeds for outlet expansion, aiming to increase the number of its outlets to 100 in 2011 from 61 at the end of June 2009.

The rights offering is expected to be completed this month.

In the first three quarters of this year, the brokerage's net profit was RMB 922 million, up 35.45% year on year. The company's net profit in the third quarter was RMB 286 million, up 515.67% from a year earlier.

Shares of Changjiang Securities gained 5.05% to stand at RMB 21 in the morning session today.