TCL Group, one of the largest Chinese television and mobile phone makers, has announced that is will cut the size of its planned share placement from CNY1.69 million to CNY1.39 billion.
This is the second time for the company to make adjustments to its share placement proposal. In December 2007, the company cut the private placement from CNY2.3 billion to CNY1.7 billion. The new reduction to its placement scale is currently waiting for the approval of the company's shareholders meeting that will be held on October 10, 2008.
TCL says that it will issue additional A-shares for no more than the funds it needed, compared with the previous 200 million to 440 million shares slated to a maximum of 10 institutional investors. However, TCL's chairman Li Dongsheng will still buy 18% of the new shares as a strategic investor.
According to TCL, the company will use the financed income in the expansion of its LCD TV production as the sales of its LCD TVs more than doubled to over 2.2 million units in the first eight months of 2008. The company will spend CNY742 million to produce LCD TVs with screens of up to 42 inches and CNY654 million to produce TVs with screen sizes between 42 inches and 56 inches.