Jihong Co (ASX: 02603) has entered into a placement agreement, the company announced.
According to the agreement, the company has appointed a placement agent to procure, on a best-efforts basis, subscriptions from no fewer than six placees, who are independent third parties, for up to 9,371,500 placement shares at a price of HK$12.24 per share.
The placement shares represent approximately 13.80% of the existing issued H shares and 2.14% of the total issued shares, excluding treasury shares, as of the announcement date.
Assuming the placement is fully subscribed, the new shares will represent about 12.13% of the enlarged issued H share capital and 2.09% of the total enlarged issued share capital, again excluding treasury shares.
The placement price of HK$12.24 per share represents a discount of approximately 17.02% to the closing price of HK$14.75 per H share on the last trading day.
It also represents a discount of about 16.68% to the average closing price of HK$14.69 per H share over the five consecutive trading days immediately preceding the last trading day.
Assuming full subscription, the gross proceeds from the placement are expected to be approximately HK$115 million.
The estimated net proceeds, after deducting all related expenses, costs, and charges, are expected to be around HK$113 million.
Consequently, the estimated net placing price per share, after these deductions, is approximately HK$12.04.
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