eGOVA plans equity offering and credit lines for smart city projects

Beijing eGOVA has approved a private placement of A-shares to raise up to 1.05 bn yuan. This capital will fund five key projects, including urban lifeline management, urban renewal, AI model applications, low-altitude flight services, and intelligent data operations, with an additional portion allocated to replenish working capital. The offering, targeting up to 35 specific investors, will be priced at no less than 80% of the average trading price over the 20 trading days prior to the pricing base date. The company anticipates the offering to complete by June 2026.

In conjunction with the equity offering, eGOVA has also secured substantial credit facilities. The company obtained a 300m yuan integrated credit line from Industrial Bank Co. Beijing Haidian Branch, and two separate 200m yuan credit lines from China Merchants Bank Co. Beijing Branch and China Construction Bank Co. Beijing Branch, respectively. These credit lines, all secured by credit for one year, will support ongoing operations and strategic growth.

The company acknowledges potential dilution of immediate returns but asserts the necessity and feasibility of the offering to enhance competitiveness and align with national digital development strategies.