Jiangsu-based computer retailer Hisap has announced plans to raise up to CNY1.4 billion by issuance of new shares, and the funds will used for the expansion of new chain stores.

According to the decision of the board of directors of Jiangsu Hongtu High Technology Company Ltd., the owner of the Hisap brand, the company plans to launch non-public offerings of 125 million shares at the price of no less than CNY11.56 per share. The company will gain about CNY1.4 billion from the non-public offerings. However, this plan still needs to be approved at its general meeting of shareholders.

The financed capital will mainly be used for the expansion of new Hisap chain stores. The Shanghai-listed company intends to open 150 technology chain stores in 12 Chinese cities as well as two flagship stores in Nanjing and Shenzhen, respectively. These 150 stores will reportedly cost CNY560.17 million and the two flagship stores will cost CNY403.45 million.

In addition, the company said it will inject the remaining capital raised this time into a logistics center upgrade and construction project, an IT chain information construction project, and to add to its liquidity.