Ultrapower PR, 6/01/10
Beijing Ultrapower (300002.SZ), IT service provider for China Mobile's (NYSE: CHL; 0941.HK) Fetion mobile instant messaging service, has announced its second set of plans for use of excess funds raised from its IPO.
The first major item is Ultrapower's expenditure of USD 10.8 mln to acquire Microsoft China's 12 mln shares in Dalian Hi-Think Computer Technology (DHC), giving it an 8% stake in the company. Ultrapower said that its investment in DHC would help the company to share in the benefits being seen from the rapid growth in the software outsourcing market, and increase its R&D management ability and efficiency.
The second major plan is to spend RMB 103.3 mln to establish a subsidiary in the Chongqing Hi-Tech Industrial Development Zone in order to boost China Mobile's (NYSE: CHL; 0941.HK) development efforts and systems implementation for rural data network functionality.
Ultrapower issued 31.6 mln shares in its IPO last year at a price of RMB 58 per share, raising a net of RMB 1.7 bln after deducting related costs, exceeding its fundraising goal by RMB 1.2 bln. On March 14, Ultrapower initially decided to put RMB 254.54 mln of the excess funds toward construction of R&D facilities and office space.
Editor's Note: Ultrapower announced its acquisition of Dalian Hi-Think in April. For more background on Ultrapower's IPO, please see "Fetion IT Service Provider Aims for RMB 502 Mln IPO" MD 9/15/09 issue and "Ultrapower 2009 Net Profit Up 125% YoY" MD 3/18/10 issue.