Dingsheng New Materials has unveiled a 1.2 billion yuan private placement plan, yet shareholders and executives are lining up to reduce their holdings. After the market close last Friday, Dingsheng New Materials announced plans to raise no more than 1.216 billion yuan for battery aluminum foil related projects and to supplement working capital. Following the private placement announcement, the company's share price fell for three consecutive trading days, with a cumulative decline of 14.04 percent. Earlier, company director Chen Weixin sold 102,600 shares, cashing out 2.49 million yuan. Shareholders Purun Pingfang and Purun Pingfang No.1 plan to reduce their combined holdings by no more than 27.878 million shares. In the first half of this year, Dingsheng New Materials achieved operating revenue of 15.466 billion yuan, up 16.17 percent year on year, while net profit attributable to the parent company reached 480 million yuan, up 155.41 percent year on year.
Jiangsu Dingsheng New Material Joint-Stock Co LtdPrivate placement dilutes existing shareholders while executives and shareholders plan to reduce holdings, causing stock to fall.
