ZTE laid out plans to raise CNY11.5 billion ($1.7 billion) in a private share placement to fund continued R&D and increase its working capital.
The vendor said it will issue about 381 million A shares, which are denominated in renminbi and traded on the Shanghai and Shenzhen stock exchanges, to ten independent institutional investors in China at CNY30.21 a share.
Shares sold are subject to a lock-in period of 12 months from the date of listing.
In a statement, ZTE said the fundraising will enable it to maintain its “high level of investment in research and development, ensure its technological competitive edge and develop its main products and businesses with core advantages”.
For the first nine months of 2019, its R&D spending totalled CNY9.36 billion, or 14.6 per cent of operating revenue. It expects the investment in 2020 to remain at roughly the same level.Subscribe to our daily newsletter Back