ChinaNetCenter to Raise RMB 3.6 Bln to Develop Cloud and CDN Services
ChinaNetCenter, 6/13/15
Shanghai-based IDC and CDN service provider Wangsu Science & Technology (ChinaNetCenter) (300017.SZ) has announced a plan for a private offering of additional shares targeting the following group of potential investors: Industrial Securities Asset Management, JT Asset Management, Bosera Asset Management, Ping An Asset Management, and Taikang Asset Management. ChinaNetCenter plans to raise up to RMB 3.6 bln by issuing no more than 81.91 mln shares priced at RMB 43.95 per share. The funds will be used for investments in a social cloud project, overseas CDN, and cloud security.
The social cloud project calls for an investment of RMB 2.2 bln, and is composed of a content and app operation platform and a business support platform for matching social cloud nodes and smart home terminals. The content and app operation platform gathers and operates various cloud services for games, videos, etc. The project will take three years to complete and is estimated to bring RMB 2.764 bln per year in additional operating revenue or RMB 419.68 mln per year in additional net profit.
The overseas CDN calls for an investment of RMB 1.05 bln, and requires the construction of CDN nodes inside and outside of China along with a global CDN control platform. The project, which also includes the establishment of an overseas research center to bolster the company's CDN business, will take 3 years and bring an additional RMB 1.23 bln in annual operating revenue, or RMB 289.95 mln in additional annual profits.
The cloud security project requires an investment of RMB 350 mln to construct and operate a cloud security platform based on the company's mature network defense technology. When completed in three years, the project is expected to increase annual revenue by RMB 300 mln and net profits by RMB 112.21 mln.
Keywords: financing Industrial Securities JT Asset Bosera Asset Taikang Asset security wireless CDN IDC ChinaNetCenter 300017.SZ Ping An Asset Management cloud computing smart appliance
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