Xinhua Winshare Publishing & Media Co. plans to issue as many as 98.7 million new A-shares and list all of its domestic stock in Shanghai as the bookseller looks to use proceeds to help fund projects including store upgrades.
Xinhua Winshare didn’t disclose how much it planned to raise, saying the issue price of the new stock will be set later, according to a Hong Kong stock exchange filing yesterday.
The company identified 1.42 billion yuan ($228 million) in five projects to be partly funded by the proceeds, including a logistics-network construction project, as well as the shop upgrades and expansion. The offering will contribute 1.18 billion yuan toward those endeavors, according to the filing.
“The A-share issue, if completed, will open a new financing channel for the business development of the company, and provide financial resources to implement the projects,” Xinhua Winshare said in the filing.
The share sale is the first for Xinhua Winshare since its initial public offering in May 2007, when it raised HK$2.14 billion ($274 million), according to data compiled by Bloomberg.