Tongfang Guoxin to raise $12.6 billion via private placement

Tongfang Guoxin Electronics Co Ltd, a chip-making unit of State-backed Tsinghua Unigroup, plans to raise as much as 80 billion yuan ($12.6 billion) of additional funds through a private placement.

The company said it will sell 2.96 billion shares at 27.04 yuan each to eight companies and its employees, in what is likely to be the biggest fund-raising in the A-share market.

Shares of Tongfang Guoxin, which were suspended from trading for nearly a month, surged by the 10 percent limit to 35.96 yuan after resuming trading on Friday.