yihua healthcare issued a private offering plan on the evening of the 17th. it planned to give shares to 2 specific investors: zhong guan bao investment co., ltd. and hua insurance, to raise rmb 1.053 billion at an issue price of rmb 4.00 per share. the company said that the introduction of strategic investors could promote its long-term development, optimize its capital structure, enhance its anti-risk capability, reduce its financial costs and improve its profitability.
according to the announcement, the offering price was no less than 80% of the average price of the company's shares in the 20 trading days before the benchmark or rmb 3.54 per share, and the final offering price was set at rmb 4.00 per share. the lockup period was 18 months. the company raised a total of rmb 1.053 billion in the non-public offering, of which rmb 750 million was used to repay bank loans, and the rest was used to supplement working capital.
zhong guan bao investment co., ltd. planned to subscribe 206,373,026 shares with a subscription amount of rmb 825,492,104.00. zhong guan bao investment co., ltd., established on july 2, 2007, is a diversified investment organization. its business scope covers four sectors: zhong guan bao capital, zhong guan bao industry, zhong guan bao real estate, and zhong guan bao construction.
hua insurance planned to subscribe to 56,936,240 shares for a subscription amount of rmb 227,744,960.00. hua insurance is a well-known insurance institution in china. its main business is selling critical illness insurance, accident insurance, medical insurance, annuity insurance and other insurance.
with the operation and service of medical institutions and the elderly care community as its primary business, yihua healthcare is committed to building a nationwide comprehensive medical service platform and elderly care chain service community. it has gradually formed a comprehensive integrated medical and nursing operation system. at the same time, it also reaches out to medical professional engineering, health care and rehabilitation online medical care to create a complete, collaborative, and efficient medical and elderly care industry ecological chain.
the company is one of the providers of comprehensive medical logistics services with the broadest service network in china, providing comprehensive non-diagnostic services for nearly 120 large and medium-sized general hospitals in china. there are 19 companies been controlled and managed by the company. almost 8,000 medical and nursing beds are under its management. the company currently operates a number of elderly care communities, covering such cities as shanghai, hangzhou, jiaxing, ningbo, qingdao and sanya, and it owns more than 3,000 sets of middle and high-end elderly care apartments.
through this private offering, the company will establish a comprehensive and in-depth strategic partnership with zhong guan bao investment co., ltd. and hua insurance in the fields of health care and elderly care services. in collaboration with the resources, the company will be promoted to go further in medical care and elderly care. in addition, the use of raised funds to repay bank loans could optimize the company's capital structure, enhance its anti-risk capacity, reduce its financial expense and cost of capital, and improve its profitability.