Forest Lighting (also know as MLS) plans to non-public issue stocks 6.1 million shares at RMB 38.11 (US$ 6) per share. The offering will raise about RMB 2.3 billion and will be used to fund several initiatives, including Xiaolan SMD LED packaging technical innovation project, phase one of Ji’an SMD LED packaging facility construction project and phase one of Xinyu LED application construction.
The Chinese manufacturer mainly produces LED packaging and application lighting series. After several years of development, the company has become a leading firm in the LED packaging industry. It is also the only Chinese company to have entered the global top ten LED packaging enterprise. Forest Lighting has increased investment in LED lightings since 2013 as it became the company’s main profit source. The company has successfully raised core competition by improving product lines and expanding supply chain.
The above mentioned investment project will surely consolidate Forest Lighting’s leading position in LED packaging industry by expanding and improving its supply chain. Based on government policies, incandescent bulbs will be phased out by 2015, and raise its market share to more than 20%. LED lighting industry’s annual value will be boosted about 30% that translates into RMB 450 billion. Government policies that offer preferential treatment to the LED industry will also give LED industry a positive outlook.
