Zhanjiang Shihua Chemical Co., Ltd. announced a private placement of common shares for gross proceeds of CNY 240,000,000 on January 27, 2019. The transaction will involve participation from existing investor, Maoming Petro-Chemical Shihua Co., Ltd (SZSE:000637). Post the closing, the investor will continue to retain its stake of 100% in the company. Post-closing of the transaction, the registered capital of the company will increase from CNY 20,000,000 to CNY 260,000,000. The transaction has been approved by the board of directors of the investor at its 5th extraordinary meeting of the 10th directorate.