Longxing Chemical aiming to raise 400 million yuan in share issue

China’s Longxing Chemical Industry, which supplies carbon black and electricity to “major tyre makers” in the people’s republic is reportedly planning to raise 400 million yuan by issuing a maximum of 45 million shares at 9.26 yuan per share in a private placement.

The news, which was reported by capitalvue.com and the National Business Daily, citing  company filings suggests that the funds raised will be invested in carbon black production facilities, which will have annual production capacity of 140,000 tons after completion.

The company reported a 68.96 per cent year-on-year increase in net profit to 85.02 million yuan for the first three quarters of 2011, with revenue of 1.549 billion yuan, up 65.35 per cent year-on-year. Earnings per share hit 0.2657 yuan.

According to capitalvue.com, Longxing Chemical Industry predicted a 50 – 70 per cent year-on-year increase in net profit to 109-123 million yuan for full year 2011.

Jiaozuo Longxing, a subsidiary of Longxing Chemical will reportedly handle the carbon black production project.

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