Jiangxi Hongdu to raise funds through private placement

Jiangxi Hongdu Aviation Industry Co, an aircraft and parts maker, plans to raise as much as 2.5 billion yuan through a private placement of shares to strengthen its competitiveness in aircraft exports and outsourcing services, the company said yesterday.

The Shanghai-listed company plans to issue up to 106 million shares at not less than 23.78 yuan per share, aiming to raise not more than 2.5 billion yuan. There are around 10-targeted investors in this private placement, including AviChina Industry & Technology Co, which controls 55.29 percent of Jiangxi Hongdu and other institutional and individual investors.

AviChina will acquire shares worth 250 million yuan for cash. After the placement, the State-run aircraft maker will remain the controlling shareholder of Jiangxi Hongdu, the company said in a statement.