Nanjing Shenghang Shipping, a small-sized Chinese chemical and products tanker owner and operator, will raise a total of CNY20.25 million (USD3.16 million) in a private placement.
The proceeds reaped by the deal will be used to replenish its working capital and help mitigate the liquidity pressures, a filing of the company stated on 23 September.
The subscribers for the 2.7 million shares issued at CNY7.5 per share in the private placement are identified as China’s Huatai Securities, Cinda Securities, Nanjing Securities, Dongguan Securities, and Wanlian Securities, all of which are domestic securities brokerage in China.
Nanjing Shenghang Shipping’s profit rose 24% year-on-year to CNY13.5 million in the first six months in 2015 on revenue growth.
First half 2014 revenue rose by 14% year-on-year to CNY105.7 million.
As of 30 June, the company owned seven chemical/products tankers, with another two bareboat chartered in. Its business mainly covered the trades along the Yangtze River and China’s coastal areas.