Jiangsu Dongyuan Electrical Group (002074) plans to raise up to 440 million yuan from a private placement of a maximum of 70 million shares at not less than 6.33 yuan per share, and the funds raised will be used to expand the production of KYN 2812-40.5KV intelligent switchgears, intelligent and energy-saving transformers, and to boost working capital, reports yicai.com, citing a company filing.
Major shareholder Nantong Chuangyuan Investment will subscribe to 15-30 percent of the private placement.
The maker of electrical equipment and switches expects to raise net proceeds of 423 million yuan, of which 43 million yuan will be used to boost working capital, and 250 million yuan will be invested in the switchgear expansion project, which will increase the company's capacity to 17,170 units after completion.
The company expects the switchgear project will contribute annual net profit of 30.17 million yuan on revenue of 350 million yuan once it is operational. The construction period is 12 months.