Shenzhen Textile (Holdings) Co Ltd<000045><200048> yesterday announced that it would issue up to 110 million shares to selected investors.

The company said in a statement filed with the Shenzhen Stock Exchange that it hopes to raise up to RMB 850 million through the placement. The issue price will be RMB 8.31 per share, according to the statement.

Shenzhen Investment Holdings Co Ltd and an affiliate of Shenzhen State-owned Assets Supervision and Administration Commission will spend RMB 350 million and RMB 150 million to subscribe new shares, respectively.

Shenzhen Textile will use the proceeds from the issuance to finance a TFT-LCD polarizing film project belonging to its optical technology subsidiary.

The placement plan is subject to approval from the China Securities Regulatory Commission.