Tianjin Tianyao Pharmaceutical (600488) plans to issue 66.5 million shares to 10 designated recipients at a minimum of 8.27 yuan per share to raise up to 550 million yuan, reports National Business Daily, citing a company filing.

The company’s parent, Tianjin Pharmaceutical Group is committed to subscribe to 46.8 percent of total shares for 257 million yuan.

The company will spend 164 million yuan of the funds raised through the private placement to acquire Tianjin Tianan Pharmaceuticals' amino acids active pharmaceutical ingredient (API) business and related assets and liabilities. 112 million yuan will be used to acquire Tianjin KingYork Biotech's sewage treatment and environmental engineering assets. The remaining 250 million yuan will be invested in the upgrade and expansion of the company's corticosteroids API production capabilities.