Crown International Corporation Limited (727) has released details of a proposed rights issue on a three-for-one basis, offering up to 953,883,000 new shares at a subscription price of HK$0.65 per share. The offer, if fully taken up, is expected to raise gross proceeds of approximately HK$620 million, with estimated net proceeds of around HK$618 million.
The proposed pricing represents a discount to the recent market prices and is set after considering the group’s financial position and prevailing market conditions. Subject to independent shareholders’ approval at an extraordinary general meeting (EGM), the rights issue will proceed on a non-underwritten basis, meaning the ultimate subscription level could be lower if not fully subscribed.
According to the announcement, Crown International plans to use the net proceeds primarily to develop a parcel of land in Shenzhen’s Qianhai New District. The site covers roughly 8,720 square meters and is intended for two residential towers, encompassing approximately 71,000 square meters of gross floor area. Construction is slated to commence once the fund-raising is complete, and total development costs are estimated at RMB1,600 million.
The company has scheduled the EGM for independent shareholders to vote on the proposal and will thereafter send relevant prospectus documents to qualifying shareholders. The board noted that no controlling shareholder or director holds shares requiring them to abstain from voting. If approved, allotment letters for the rights issue are expected to be dispatched in late January 2026, with dealings in any resulting fully paid shares slated to begin on or around late February 2026.
Crown International emphasized that the rights issue remains conditional upon satisfying the stated requirements, and interested parties are advised to be aware of the possibility that it may not proceed if any conditions remain unmet.
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