July 25 (Bloomberg) -- BOE Technology Group Co. fell the most in a month in Shenzhen trading after the maker of flat-screen television panels said it planned a share sale that may be China’s largest private placement.
The company declined 8.4 percent, the biggest drop since June 24, after saying it would sell as much as 46 billion yuan ($7.5 billion) in shares to investors to finance expansion. The shares closed at 2.19 yuan, 4.3 percent higher than the base 2.10 yuan offer price as cited in a regulatory filing by the Beijing-based company yesterday.
BOE, which reported operating losses in each of the past five years, said it intends to sell the shares to as many as 10 investors. The company, with a market value of about 29 billion yuan as of today, will issue between 9.5 billion and 22.4 billion shares, BOE announced yesterday.
At the top end, that would surpass the Bank of Communications Co.’s $4.68 billion sale announced in August 2012 to become the largest private placement of shares traded on a Chinese exchange, according to data compiled by Bloomberg. A sale at the lower end would raise about 20 billion yuan.
The projects to be funded by the sale include plants for making displays with low energy consumption and high definition capabilities, according to the company’s website.
BOE has fallen 3.5 percent this year in Shenzhen trading, compared with the 11 percent slump in the Shanghai Composite Index.
The shares will be sold privately within six months after approval from the China Securities Regulatory Commission, according to the regulatory filing.
The company, established in 1993, has seven manufacturing bases in Beijing, Chengdu, Hefei, Gu’an, Suzhou, Xiamen and Ordos, according to its website.
To contact the editor responsible for this story: Michael Tighe at email@example.com