Cocoon Holdings to Raise HK$5.10 Million via 20% Share Placement at 18.7% Discount

Bulletin Express05-28

Cocoon Holdings Limited (Cocoon) signed a placing agreement on 28 May 2026 to issue up to 25.71 million new shares under its existing general mandate.

The shares will be placed at HK$0.200 each, representing an 18.70% discount to the 28 May closing price of HK$0.246 and an 18.03% discount to the five-day average of HK$0.244. SFGHK Limited will act as placing agent on a best-efforts basis and receive a 0.75% commission on the aggregate placing price.

The proposed issuance equals 20.00% of Cocoon’s current issued share capital and 16.67% of the enlarged share base. Gross proceeds are expected to reach HK$5.10 million; after fees, net proceeds of about HK$5.00 million are earmarked as follows: approximately HK$4.00 million for investments in listed or unlisted securities and roughly HK$1.00 million for general working capital. The net price per new share is estimated at HK$0.196.

Completion is contingent on Stock Exchange approval for listing and dealing in the new shares, with a long-stop date of 18 June 2026. The placing can be terminated by the agent under specified adverse events. No additional shareholder approval is required because the shares will be issued under the general mandate granted on 27 May 2026.

Shareholding will shift as follows if the maximum allotment is completed: the public float held by new placees will rise from 0% to 16.67%, while existing public shareholders’ stake will fall from 81.57% to 67.97%. Major individual shareholder YU Po Kwan’s holding will decline from 17.06% to 14.22%.

Over the past 12 months, Cocoon raised HK$6.60 million net through two placings completed in June and August 2025, with proceeds applied to securities investments and working capital as planned.

Cocoon describes the latest placement as an opportunity to capture “current dynamic investment opportunities” and strengthen operational funding.

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