Dongfang Electric plans $70m share offering

Dongfang Electric Corporation Limited (SSE:600875) plans to raise up to 500 million CNY (approximately $70 million USD) through a targeted A-share offering to no more than 35 specific investors, including its controlling shareholder, Dongfang Electric Group, which intends to subscribe 50 million CNY, with the final amount determined later. The offering, approved by the Shanghai Stock Exchange and the China Securities Regulatory Commission, sets the issue price at no less than 80% of the average A-share trading price in the 20 days prior to the issuance date. Proceeds will fund the acquisition of minority stakes in subsidiaries, including Dongfang Turbine, Dongfang Boiler, and Dongfang Electric Machinery, as well as boost research and manufacturing capabilities in high-growth areas such as pumped storage and gas turbines and supplement working capital. The company is targeting both domestic and international market expansion with a focus on renewable energy and high-efficiency power equipment. With the offering, it aims to solidify its market position and pursue sustainable growth, said the company. The offering does not alter the control structure of Dongfang Electric.