Seeking funds to grow

NORTHEAST Securities Co Ltd plans to raise up to 10 billion yuan (US$1.42 billion) from a private placement to expand its corporate business, according to a statement filed to the Shenzhen Stock Exchange yesterday.

The minimum offering price was cut to 25.66 yuan per share from the closing price of 34.38 yuan yesterday as a result of volatility in the capital markets recently.

The securities firm plans to issue 150 million to 300 million shares at not less than 25.66 yuan each in a private offer to 10 institutional investors. Proceeds from the sale will be used to increase the number of outlets and expand its business scope to underwriting and proprietary trading.

The plan will require the approval from shareholders and the China Securities Regulatory Commission.

Northeast Securities got listed in August last year via a back-door listing when it took over Liulu Industrial Co Ltd of Jinzhou Economic & Technology Development Zone.

The broker's net profit fell 22.35 percent to 179.25 million yuan in the first quarter of this year from 230.85 million yuan a year earlier.

Northeast Securities, based in Jinzhou in northeast China, is the sixth-largest brokerage by market value and operates 65 outlets nationwide.