ZTE Corp. is considering to raise about 11.51 billion yuan from a private placement of class A shares, according to media reports.

The Chinese company intends to use the proceeds for research and development of 5G networks and for working capital.

ZTE plans to sell 381,098,968 class A shares, or 8.27% of the total issued share capital, to independent third-party investors at 30.21 yuan per share.

The shares are subject to a lockup period of 12 months from the listing date and will be issued to 10 independent professional or institutional investors in China.

As of Jan. 15, US$1 is equivalent to 6.89 yuan.