Investment Summary
Fuyao Glass Plans to Raise Approximately HK$4.1 Billion through Private Placement and
Initiates Photovoltaic Glass Business
Recently, Fuyao Glass announced that it planned to issue no more than 101 million
additional H shares, which accounted for 20% of the total shares issued by the Company.
The issue price should not be less than 80% of the average closing price of the earlier five
transaction days as per the day determined for placement or subscription. Based on the
latest closing price of the Company’s H shares, it is estimated that the total raised funds will
not exceed HK$4.1 billion/RMB3.4 billion. All funds will be used for replenishment of
operating capital, repayment of interest-bearing debts, R&D projects, optimization of the
Company’s capital structure, expansion into the photovoltaic glass market and other general
purposes.
If stocks are issued according to the cap, the H-share equity will be increased by
approximately 16.7% after the additional issuance, which is equivalent to an increase of
3.87% to the total equities. Influence of the dilution is limited.