Hiteker to Raise RMB 1.41 Bln in Private Stock Offering
China Securities Journal, 9/25/09
Jiangsu-based consumer electronics manufacturer Hiteker (600122.SH) announced in a filing today that the company plans to issue a non-public stock offering of no more than 125 mln shares of stock to no more than ten investors, at a price of no lower than RMB 11.56 per share, in order to raise up to RMB 1.41 bln in capital. The capital will be used to expand chain stores, to build or upgrade logistics and shipping centers, for IT product chain store informatization projects, upgrades to "Red Express" computer repair service stations, and to bolster the company's liquid capital reserves.
Hiteker plans to expand its IT product chain sales services through leases in 12 provinces in southern central, southern, eastern, and northern China, opening 150 new stores for a total investment of RMB 560.17 mln. Hiteker also plans to open flagship stores in Nanjing and Shenzhen, for a total investment of RMB 403.44 mln.
Hiteker's logistics plans include new construction and projects, with centers in Shanghai, Zhejiang, Jiangsu, Beijing, Fujian, Jiangxi, Shandong, and Anhui to be expanded for an estimated total investment of RMB 70 mln. Construction of a new logistics center in Guangdong province will cost an estimated RMB 11.11 mln.
The company's main goal in the area of IT projects is the construction of a Hiteker-branded e-commerce platform, with a total investment of RMB 39.96 mln.
Hiteker plans to build on the basis of its standardized "Red Express" computer service stations between 2009 and 2010, infusing RMB 30 mln into upgrades.
Keywords: financing retail consumer electronics e-commerce hardware 600122.SH Hiteker
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