(Yicai Global) Jan. 16 -- China's second-biggest telecoms equipment maker ZTE plans to raise CNY11.5 billion (USD1.7 billion) in a private placement to enhance its research in fifth-generation networking technology.

The Shenzhen-based firm will issue 380 million mainland-listed shares at CNY30.21 (USD4.39) apiece, some 22 percent less than its closing price yesterday, ZTE said in a statement today. Its share price [SHE:000063] spiked at CNY38.41 this morning, a six-month high, but had simmered to CNY37.64, a 1.95 percent gain on yesterday's close, as of 1.45 p.m.

5G is about to be a global commercial phenomenon and getting a leg up in the sector could help ZTE come out swinging in a golden era for related construction and digital applications, it added.

ZTE already had 35 commercial 5G contracts worldwide as of September, and had delivered more than 50,000 base stations and teamed up with over 60 telecoms operators in China, Europe, the Asia-Pacific region, the Middle East and other regions.

Editor: James Boynton