InterChina seeks $200m equity boost

Shares of Shanghai-listed water plant operator and investor Heilongjiang Interchina dipped by 6% earlier this week after the company announced plans to issue 160 million new shares in a private placement to up to ten subscribers.

The new shares are expected to be priced at RMB8.03 each to raise a total of RMB1.29 billion ($203 million). The funds will go primarily towards the acquisition of the remaining 90% stake in Beijing TDR Enviro-Tech – a wastewater equipment supplier and plant developer – for RMB495 million ($78 million), to strengthen the capital bases of certain subsidiaries, and for capital expenditure related to its existing project portfolio.

HIC’s shareholders will vote on the share issue on 11 July.

Heilongjiang Interchina is 53.77% owned by Hong Kong-listed Interchina Holdings. ICH has yet to clarify whether it will subscribe to the new shares; if it does not, its holding will be diluted to 38.74%.