(Yicai) June 4 -- Shanghai Yongguan Adhesive Products intends to carry out a CNY927 million (USD140 million) private placement to finance a new electronic-grade glass fiber cloth.

Yongguan will issue new shares to no more than 35 investors to raise up to CNY927 million, the Shanghai-based manufacturer of adhesive products said in an exchange filing yesterday.

The proceeds will be used to build a new factory with an annual production capacity of 2,000 tons of electronic-grade glass fiber cloth and 16,500 tons of harness adhesive tape, Yongguan noted.

Yongguan’s stock [SHA: 603681] closed 1.9 percent up at CNY26.60 (USD3.92) in Shanghai today, after earlier surging by the 10 percent exchange-imposed daily trading limit.

Founded in 2002, Yongguan operates in over 110 countries and regions. It has Chinese production bases in Fuzhou in Jiangxi province and Linyi in Shandong province, as well as a factory in Haiphong, Vietnam.

Editor: Futura Costaglione