(Yicai Global) May 14 -- Leading Chinese digital marketing service provider Genimous Technology will raise about CNY1.7 billion (USD238 million) via a private placement for multiple digital marketing infrastructure construction projects to greatly refine its services for various customers, the company said in a statement yesterday that sent its stock streaking to the 10 percent daily limit up at today’s opening.

Zhengzhou, Henan province-based Genimous’ shares [SHE:000676] stopped trading at CNY8.14 (USD1.2), per exchange rules.
The company plans to invest CNY720 million (USD101.5 million) and apply CNY649 million of the proceeds for intelligent advertising content production and its precision marketing platform, it said.

The firm aims to achieve automatic production and precise delivery of a variety of advertisements, including images, text, short videos, augmented reality interaction, and video advertising marketing in both online and offline scenarios. The project uses new technologies, including fifth-generation wireless network, artificial intelligence and Big Data as well as AR.

Influential Investment

The company plans to invest CNY846 million and use CNY573 million of the funds in the live streaming e-commerce platform to achieve mass production of high-quality content centered on the influencer economy.

Genimous intends to invest CNY494 million in a blockchain infrastructure and application platform project and spend CNY400 million of the funds raised to set up a national large-scale blockchain service infrastructure platform and corresponding industrial service platform to enhance its advertising business’ core competitiveness.

The firm will also invest CNY126 million and allot CNY69.65 million of the financing to build a marketing business data center, and use Big Data and AI to integrate, clean, classify and share its core data assets, per the statement.

The data center is expected to take two years to put up and the remaining projects are forecast to be completed and go into use within three years, according to the statement.

Genimous will issue up to 281 million shares in the private placement, the statement added. After the financing concludes its biggest shareholder's stake will be diluted, but will remain the largest holding in the company, which will still lack an actual controller.

Editor: Ben Armour