Keyuan Petrochemicals, a manufacturer of various petrochemical products in China, has completed a private placement financing with institutional investors with gross proceeds of $20.3m to fund the purchase of raw materials for its petrochemical production facility.
The lead investor was Prax Capital, a China-focused private equity fund that invests in the company through its solely owned investment vehicle Dragon State International, by issuing 540,001 investment units.
Each unit includes 10 shares of Series B preferred stock convertible into ordinary common shares, in addition to 1.5 Class C Warrants with an exercise price of $4.50 per share and 1.5 Class D Warrants with an exercise price of $5.25.
TriPoint Global Equities was the placement agent on the transaction.
Keyuan will invest the $20.3m of new capital to generate incremental revenues and profits.
The company recently raised its 2010 guidance by approximately 20% to $550m revenues and $36.3m net income.
Keyuan recently said that it has commenced the construction of the first Styrene-Butadiene-Styrene (SBS) production facility in Ningbo, Zhejiang Province on 1 September, which will be located adjacent to its current production facility and is expected to add 70,000 metric tons to Keyuan’s production capacity by the end of 2011.