Fiyta, a Shenzhen watch company listed in the A-share market, has released its non-public offering plan.
According to the plan, the company will sell 30 to 50 million shares to no more than 10 specific targets to raise CNY530 million for the development of its watch retailer, Harmony World Watch Center.
The capital raise will be mainly used to open new Harmony World Watch Center stores and to renovate and update existing stores. The two projects will cost about CNY418.1 million and CNY113.5 million.
According to a securities affairs representative from Fiyta, the financing plan has been approved by the board of directors and it will be formally carried out if it is also approved in the general meeting of shareholders which will be held two month later.
Fiyta is optimistic about the Chinese domestic luxury market. In recent years, the company has shifted its focus to the expansion of world market for watch sales. Fiyta's businesses now include world watch sales, watch production, and self-managed properties, of these the sales of Harmony World Watch Center accounts for about 70% of their revenue.