ZTE said it was looking to raise 11.51 billion yuan ($1.7 billion) from a private placement of A shares, and that it plans to use the proceeds for research and development (R&D) of 5G networks as well as working capital.

ZTE plans to issue a total of 381,098,968 shares of A shares at an issue price of RMB 30.21 per A share, with a total raised capital of RMB 11.513 billion, and a net proceeds of RMB 11.459 billion after deducting the issuing costs. The funds will be used for 5G network evolution-oriented technology research and product development projects and supplementary liquidity.

The A shares, which are subject to a lock-up period of 12 months from the date of listing, will be issued to 10 independent professional or institutional investors in China.

ZTE is already providing complete 5G end-to-end solutions and rich network construction experience, and has launched cooperations with global operators and industry customers in the 5G field. The company says it has won 35 5G commercial contracts worldwide, and has launched in-depth 5G cooperation with more than 60 operators worldwide.