(Yicai Global) Sept. 20 -- Beijing 798 Creative Industry Investment Co., which operates 798 Art Zone, a long-established artistic district in China's capital, plans to raise at least CNY15.15 million (USD2.3 million) in funding by divesting a share of up to 35 percent, local newspaper The Beijing News cited China Beijing Equity Exchange as saying.
Upon the completion of a deal, the combined holding of its two existing shareholders, Beijing Sevenstar Huadian Technology Group and Beijing Wangjing Emerging Industry Zone Development Co., will be at least 47.3441 percent, while those of the new investors will be capped at 20 percent and 15 percent. The company's employees will hold a stake of up to 17.6559 percent through the staff stock ownership scheme.
Sevenstar Huadian Technology and Wangjing Emerging Industry Zone Comprehensive Development currently own 97.56 and 2.44 percent stakes in the company, respectively.
The proceeds will be used to develop artwork trading (original works and art derivatives), exhibitions (master exhibitions, artwork trading promotions and art fairs) and value-added services (art finance and bonded warehousing), the firm added.
798 Art Zone, in Jiuxianqiao, Chaoyang District, is a complex of renovated factory buildings. Its main sections measure 230,000 square meters in floor area and the zone is home to a large number of galleries and design studios.
Beijing 798 Creative Industry Investment has seen its financial performance go downhill in recent years, with operating losses of CNY8.7 million and a net loss of CNY222,300 last year.