Alco Holdings (Alco) has launched a non-underwritten rights issue that could raise up to HK$126.00 million before expenses.
Key Terms • Basis: Four rights shares for every one existing share held on the 28 May 2026 record date. • Subscription price: HK$0.55 per rights share, a 20.3% discount to the HK$0.69 closing price on 24 March 2026. • Maximum new shares: 229.11 million, expanding total issued shares to 286.39 million (from 57.28 million). • Trading: Existing shares turned ex-rights on 19 May 2026; nil-paid rights trade 2–9 June 2026. Fully-paid rights are expected to commence trading on 14 July 2026. • Acceptance deadline: 4:00 p.m., 12 June 2026. • Listing approval from the Stock Exchange remains a condition precedent.
Placement of Untaken Rights Any rights shares not subscribed (‘‘Unsubscribed Shares’’) and those attributable to non-qualifying shareholders will be placed by Advent Securities (Hong Kong) Limited between 23 June and 3 July 2026. Net premiums (‘‘Net Gain’’) realised from this compensatory placement will be distributed on a pro-rata basis to shareholders who did not take up their entitlements, provided the amount exceeds HK$100.
Use of Proceeds (Assuming Full Subscription) • HK$50.00 million (41%) – repay unsecured borrowing from Proyan Consultancy Ltd. • HK$22.00 million (18%) – settle overdue payables to OEM suppliers and service providers. • HK$31.50 million (26%) – expand Asia-Pacific retail network and upgrade product design capabilities. • HK$18.30 million (15%) – general working capital, including staff costs, logistics, rentals and professional fees.
Shareholder Impact Shareholders who do not participate will see their holdings diluted. In the event the offer is undersubscribed and placement is insufficient, the issue size will be reduced accordingly. A scale-down mechanism will prevent triggering a mandatory takeover offer or a public-float shortfall.
Key Dates (2026) • Nil-paid rights trading: 2–9 June • Latest payment/acceptance: 12 June • Results announcement: 10 July • Despatch of share certificates & refunds: 13 July
The rights issue is subject to shareholder approval (obtained on 15 May 2026) and other customary conditions. If any condition is not met by 6 July 2026, the transaction will lapse and application monies will be returned.
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