Companies

China's Irico Display to raise 6b yuan to boost output

(Agencies)
Updated: 2011-04-06 13:49

SHANGHAI - China's Irico Display said on Wednesday it plans to raise 6 billion yuan ($917.5 million) in a private placement to increase its production of liquid crystal display panels (LCD) and high-tech light-emitting diodes (LED).

Irico plans to issue no more than 430 million new shares at a minimum price of 14.30 yuan and the total amount raised would not exceed 6.08 billion yuan, it said in a statement to the Shanghai Stock Exchange.

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The company, a subsidiary of State-owned Irico Group Corp, said it planned to spend 4.4 billion yuan to build an LCD glass production plant that will have an annual output of 2.2 million units.

It would spend another 1.6 billion yuan to build an active-matrix organic light-emitting diode (AMOLED) plant. AMOLED technology is used in mobile phone devices, digital cameras and televisions.

Shares in Irico, based in Shaanxi province, last traded at 16.08 yuan on March 25. It has been on a trading halt since that date.

LED maker Cree Inc last month cut its third-quarter revenue and margin forecast, citing higher customer inventories and pricing pressure, in part as low-cost Chinese producers have contributed to an abundant supply.