Hebei Jinniu Chemical Industry (600722), a maker of polyvinyl chloride (PVC) resins, plans to scale back its private placement from a maximum of 2.2 billion yuan to 1.6 billion yuan, and the total issuance amount will be reduced from 355.98 million shares to up to 259 million shares, reports Securities Times, citing a company filing.
Controlling shareholder, Jizhong Energy Resources (000937) will fully subscribe to the private placement at 6.18 yuan per share.
According to the announcement, proceeds raised will be used on a 400,000-ton PVC resin project and to replenish working capital.
Jizhong Energy Resources said last November it intends to spend between 120 million yuan and 160 million yuan to subscribe to the private placement in order to support Jinniu Chemical Industry's development.