China Natural Gas, Inc. recently completed its secondary public offering of common stock, raising $47.5 million in net proceeds for the company. China Natural Gas, Inc. sold 5.725 million shares at a price of $8.75 per share.
Qinan Ji, the CEO of China Natural Gas, commented, “We are very pleased to announce the closing of this public offering. We believe this transaction will ensure the future growth of our LNG business and expansion of our existing CNG business, as well as further strengthen our balance sheet and enhance our working capital.”
China Natural Gas, Inc. owns and operates a 120 kilometer long compressed natural gas pipeline in the Chinese city of Xi’an to supply CNG for industrial, residential and commercial use. The company also operates a business converting automobiles from gasoline to CNG as its primary fuel source, and is entering the liquefied natural gas market as well.
China Natural Gas, Inc reported revenues of $20.7 million in the second quarter of 2009, up 23% year over year. The company generated net income of $3.8 million.