ZTE said on January 16 that it would raise 11.5 billion yuan through non-public offering in the Chinese A-share market for technology research for the 5G network evolution.
ZTE issued an announcement saying that it plans to issue 381,098,968 A shares at an issue price of RMB 30.21 per share, with a total raised capital of RMB 11.513 billion, and a net raised capital of 11.459 billion after deducting the issuing expenses.
These funds will be used for cellular mobile communication networks, core networks, transmission and bearer networks, fixed-line broadband, big data and network intelligence technology research and product development.
This will help ZTE to continue to maintain high R&D investment, adhere to technological leadership, and strengthen the company's advantages in the process of 5G-oriented network evolution, the announcement said.
In addition, the non-public issuance of A shares can supplement the company's liquidity needs for business development, and the company's capital structure will be further optimized, which will help strengthen the company's ability to resist risks.
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