Wasion Holdings (03393) rose nearly 6% in morning trading. As of the time of writing, the stock was up 6.07%, trading at HK$24.48 with a turnover of HK$35.6028 million.
The company recently announced a proposal to spin off its subsidiary, Weiyuan Energy, for an independent listing on the Main Board of the Hong Kong Stock Exchange.
Notably, Weiyuan Energy had previously introduced Boyu Investment as a strategic shareholder. According to the capital increase agreement, Boyu Investment will subscribe for 48.81 million new shares in Weiyuan Energy for a total consideration of RMB 380 million, representing approximately 8% of its enlarged share capital and implying a valuation for Weiyuan Energy of about RMB 4.75 billion.
SDIC Securities (International) released a research note stating that the collaboration between Weiyuan Energy and Boyu Investment on capital and industrial resources is anticipated to effectively enhance the company's business expansion and market competitiveness, leveraging Boyu's extensive portfolio and cross-border investment experience in areas such as data centers, technology, and new energy, thereby accelerating its global footprint.
Wasion Holdings' ADO business, driven by robust demand from data centers, is entering a phase of rapid growth and is becoming a significant engine for the group's overall business expansion.
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