Jiangsu-based computer retailer Hisap has announced plans to raise up to CNY1.4 billion by a private issue of new shares to fund the opening of additional chain stores.
According to the decision of the board of directors of Jiangsu Hongtu High Technology Company, the owner of the Hisap brand, the company plans to launch non-public offerings of 125 million shares at a price of no less than CNY11.56 per share. It is estimated that the company will gain about CNY1.4 billion from these non-public offerings. However, this plan still needs to be approved at its general meeting of shareholders.
The capital raised will mainly be used for the expansion of new Hisap chain stores. The Shanghai-listed company intends to open 150 IT chain stores in 12 Chinese cities as well as two flagship stores in Nanjing and Shenzhen. These 150 stores are reported to cost CNY560.17 million and the two flagship stores will cost CNY403.45 million.
In addition, the company said it will inject the remaining capital raised at this time into a logistics center upgrading and construction project, an IT chain construction project, and to add to its liquidity.