CHK OIL (00632.HK) has announced a proposed share placement, following a previous placement transaction.
The company entered into a placement agreement on June 23, 2026, after market hours, with appointed placement agents. Under this agreement, the agents will act on a best-efforts basis to arrange for no fewer than six independent placees to subscribe for up to 86.87 million placement shares at a price of HK$0.21 per share.
These new shares will be issued under the general mandate granted to the board of directors at the company's annual general meeting held on June 27, 2025. The placement shares represent approximately 9.08% of the total issued share capital as of the announcement date, and about 8.33% of the enlarged share capital upon their issuance.
The placement price of HK$0.21 per share represents a discount of approximately 17.6% compared to the closing price of HK$0.255 per share on the Hong Kong Stock Exchange on the date of the placement agreement.
Assuming all placement shares are successfully subscribed, the gross proceeds from the placement are expected to be approximately HK$18.24 million. After deducting related expenses, the net proceeds are estimated to be around HK$17.32 million, equating to a net issue price of about HK$0.199 per placement share.
The company intends to allocate the net proceeds as follows: approximately 55.4% will be used to repay part of the outstanding loan principal owed to Xinhua; about 37.5% will be allocated to seeking suitable overseas investment projects and/or acquisition opportunities that the board assesses as synergistic with the group's core business; and the remaining 7.1% will be used for the group's other business operations and general working capital purposes.
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