Jiangsu Province-based Chinese steel producer Nanjing Iron and Steel Co. Ltd (Nanjing Steel) has announced that it will issue not in excess of 1.578 billion non-public shares at a price of RMB 2.87 ($0.44) per share to raise funds not exceeding RMB 4.529 billion ($0.69 billion) in value.
In particular, RMB 1.326 billion ($0.20 billion) of the raised funds will be used to construct a new combined-cycle electricity generating unit for the company, RMB 1.7 billion ($0.26 billion) will be invested in its steel plate project, RMB 153 million ($23.25 million) will be invested in the company’s research and development department for developing high-end finished steel, while RMB 1.35 billion ($0.221 billion) will be used to repay loans.