Shandong Molong Petroleum Machinery Company Limited disclosed a new placement of up to 33.62 million H shares at HK$3.50 each, aiming to raise gross proceeds of approximately HK$117.65 million and net proceeds of about HK$114.89 million after fees and expenses.
The offer price represents discounts of 23.18 % to the 10-day, 19.91 % to the 5-day, and 16.17 % to the last closing averages prior to the 24 September 2026 announcement. China Merchants Securities (HK) Co., Limited has been appointed sole overall coordinator and placing agent, mandated to place the shares with at least six independent professional or institutional investors on a best-efforts basis.
Upon full subscription, the new shares will equal 11.93 % of Shandong Molong’s existing H-share float (281.80 million shares) and 4.08 % of the company’s total issued share capital. Post-placement, the enlarged H-share base will rise to 315.42 million, representing 36.80 % of total shares outstanding, while A-share holdings remain unchanged at 541.72 million.
Proceeds allocation: • 70 % (HK$80.42 million) for debt repayment • 20 % (HK$22.98 million) for trade payables, including raw-material procurement • 10 % (HK$11.49 million) for working capital and general corporate purposes
The issuance is executed under the General Mandate approved at the 30 June 2026 AGM, which authorizes up to 159.57 million new H shares. Prior use of this mandate included a July 2026 placement of 25.68 million shares that generated net proceeds of HK$115.68 million, now fully deployed.
Completion is conditional on Stock Exchange listing approval, customary legal opinions, and absence of material adverse events. The placing agent retains termination rights up to 8:30 a.m. on the closing date. A 30-day lock-up restricts Shandong Molong from issuing additional H shares outside this transaction.
The company will file requisite documentation with the China Securities Regulatory Commission and seek listing approval for the new shares on the Hong Kong Stock Exchange. Shareholders and prospective investors are advised that the placement may not proceed if conditions are not satisfied.
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