PNC Process System (PNCS) is in the early stages of planning a private placement to fund capital requirements for expansion and to seize opportunities in the market.
The manufacturer said it would issue up to 30.0 per cent of its current issued equity base of 260.02 million shares, as of 30th July, to no more than 35 investors.
It closed today with a market capitalisation of CNY 11.30 billion (USD 1.63 billion) after shares rose 2.6 per cent to CNY 43.46, from CNY 42.36 on 12th August.
PNCS is mainly focused on designing, making, installing and commissioning of systems that control the purity of the production process of advanced manufacturing products for categories such as semiconductors, food and biopharmaceuticals.
Customers range from SMIC, Samsung and Hynix to Proctor and Gamble and Mindray.
The company generated revenue of CNY 113.22 million in the first three months of 2020, down 2.3 per cent from CNY 115.94 million in Q4 2019 (Q1 2019: CNY 115.94 million).
A net profit attributable to shareholders of CNY 11.43 million in Q4 2019 turned to a loss of CNY 14.83 million in Q1 2020 (Q1 2019: CNY 9.69 million profit).
In FY 2019, the company generated revenue of CNY 986.44 million (FY 2018: CNY 674.09 million; FY 2017: CNY 369.08 million).
Net profit attributable to shareholders more than trebled year-on-year, rising to CNY 110.25 million from CNY 32.44 million.
Zephyr, the M&A database published by Bureau van Dijk, shows 307 capital increases targeting the general machinery manufacturing sector have been announced in 2020 to date.
The largest features Zoomlion Heavy Industry introducing four new investors through the issue of 1.25 billion new A shares worth an aggregate USD 934.02 million.
In fact, Chinese companies account for 120 of the 307 capital increases announced so far this year.
© Zephus Ltd