Gaodi Holdings Limited (stock code: 01676) has signed a placing agreement with KGI Asia Limited to issue up to 4.67 million new shares at HK$0.23 each under its existing general mandate. The transaction, announced on 11 March 2026 after market close, will be executed on a best-effort basis to no fewer than six independent placees.
The new shares represent approximately 1.81% of Gaodi’s current 258.43 million issued shares and 1.77% of the enlarged share capital. Aggregate nominal value is HK$0.47 million.
Pricing terms show a 4.55% premium to the last closing price of HK$0.22 on 11 March 2026 and a 2.86% premium to the five-day average of HK$0.224. Gross proceeds are expected to reach HK$1.07 million, while net proceeds, after a 1.0% placing commission and related expenses, are estimated at HK$0.96 million—equivalent to a net placing price of HK$0.21 per share.
Funds raised will be directed entirely to general working-capital needs—including headquarters expenses, professional fees and staff costs—with full utilisation targeted by end-December 2026. The placement exhausts the remaining balance of the company’s 20% general mandate granted at the 26 November 2025 AGM, and therefore does not require additional shareholder approval.
Post-placement, controlling shareholder Leung Tsz Shan Monica’s stake will dilute marginally from 6.49% to 6.37%, while public shareholders—including the new placees—will hold 93.63% of the enlarged share capital. None of the placees is expected to become a substantial shareholder.
Completion is conditional on Stock Exchange listing approval, receipt of all necessary consents, and the accuracy of warranties up to completion. Settlement is scheduled within three business days after conditions are met but no later than 1 April 2026. The placing agent may terminate the agreement under specified adverse market or contractual conditions.
This is Gaodi’s third equity raise in twelve months. The company secured HK$20.00 million in December 2025 and HK$12.94 million in September 2025, primarily for inventory, marketing, corporate development and working capital. Approximately 35% of the December proceeds and all funds from the September placement had been utilised as of the latest announcement.
Management cites the placement as an opportunity to strengthen liquidity, broaden the shareholder base and support ongoing operations of its PRC food products and F&B businesses. Shareholders and prospective investors are advised that completion remains subject to the stated conditions.
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