DAZHONG DENTAL (ASX: 02651) has disclosed its intention to conduct a share placement. The company plans to issue up to 1.2 million new shares through a placing agent to no fewer than six placees.
The placement price is set at HK$10.00 per share. This represents a discount of approximately 16.67% compared to the closing price of HK$12.00 per share on the Hong Kong Stock Exchange on June 24, 2026, which was the date of the placement agreement.
Assuming the placement is fully subscribed and completed, the maximum net proceeds to be raised are estimated at around HK$11.5 million. The company has outlined a detailed allocation plan for the use of these funds.
Approximately 26.09% of the net proceeds are earmarked for expanding the company's advertising campaigns across major online platforms. This funding will support broadening the reach of the brand name and image by appointing online advertising platforms and physical advertising agencies.
About 21.74% of the funds are designated for expanding business cooperation in the areas of marketing and investor relations. This initiative aims to maintain and enhance the group's brand reputation among the public in Hong Kong and China.
An allocation of 17.39% is planned for upgrading digital diagnostic and treatment equipment within the company's business scope. This includes the procurement of AI-assisted diagnostic equipment, painless anesthesia systems, intraoral scanners, and other advanced treatment devices to improve diagnostic accuracy and customer satisfaction.
Another 17.39% will be used to enhance overall dental service levels. This involves implementing standardized management and upgrading the customer management system, covering areas such as management systems, call centers, and membership system development.
The remaining 17.39% of the net proceeds is intended to be used as general working capital for the group.
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