(Yicai Global) April 30 -- PNC Process Systems's stock price surged today after the semiconductor firm said that it will issue new shares to secure CNY1.5 billion (USD211 million) in investment from regional government funds and industrial funds.

PNC's equity price [SHA: 603690] gained 5.75 percent to CNY37.90 (USD5.35) in the afternoon, the highest price in a month.

Some CNY500 million of the proceeds will be used to repay bank loans and the rest to replenish the company's working capital, Vice General Manager Zhao Hao and Chief Financial Officer Lu Lei said in the Shanghai-based company's statement published yesterday.

The investors are three funds under the administrations of Tianjin, Beijing, and Shanghai, as well as two industrial funds linked to China's Semiconductor Manufacturing International and affiliates of South Korea's Hana Financial Group.

The number of new shares will not exceed 58.2 million and after the transaction, the new investors' combined stakes will amount to about 18.3 percent. However, the actual controlling shareholder will not change.

The partnerships will improve PNC's financial structure but also enrich its group of shareholders while promoting development and enhancing governance, the target firm added. 

Editor: Emmi Laine