(Yicai Global) Feb. 10 -- Shares in Shennan Circuits jumped by as much as 7 percent today after the Chinese printed circuit board maker said that it has closed a CNY2.55 billion (USD401 million) private placement of newly issued shares led by Huatai Securities and the second phase of the China National Integrated Circuit Industry Investment Fund.

Shennan Circuits’ share price [SHE:002916] closed up 3.89 percent today at CNY116.50 (USD18), giving it a market valuation of CNY57 billion (USD9 billion). Earlier in the day it had hit CNY120.08.

Nineteen investors bought 23.7 million new shares at a price of CNY107.62 (USD17) each, Shenzhen-based Shennan Circuits said yesterday. This is a a 7 percent discount on today’s closing price. Huatai Securities invested CNY353 million (USD55.5 million), closely followed by the Big Fund Phase II with CNY300 million.

The National IC Fund Phase II is now the fifth biggest shareholder in Shennan Circuits with a 0.54 percent stake. The fund operates as a venture capital pool that bows out from projects it invests in when the time is right. So far, it has bought into over 10 enterprises including chipmaker Semiconductor Manufacturing International and semiconductor equipment maker Advanced Micro-Fabrication Equipment.

Shennan Circuits, which is owned by AVIC International Holding Corp. with 64 percent equity, said the funds will go towards its CNY9 billion (USD926 million) IC substrate project in Wuxi, eastern Jiangsu province to meet growing packaging demand for chips.

Editor: Kim Taylor