PATEO completes HK$381.62 million H-share placement; share capital enlarged by 1.40%

Bulletin Express06-22

PATEO CONNECT Technology (Shanghai) Corporation (“PATEO”) announced that its placing of 2.26 million new H shares under the general mandate was completed on 22 June 2026. All conditions of the placing agreement were fulfilled.

The new shares, priced at HK$173.40 each, account for 2.73% of PATEO’s H-share register and 1.40% of the company’s enlarged total share capital. Gross proceeds reached HK$391.76 million, while net proceeds after fees were HK$381.62 million, translating into a net price of HK$168.91 per share. The shares were allotted through CCASS to at least six independent placees, with none becoming a substantial shareholder.

Use of funds: • HK$305.30 million (80%) earmarked for strategic M&A and investments aligned with the “software-hardware-chip-cloud” strategy, including AI-related assets; target completion by 31 December 2026. • HK$76.32 million (20%) reserved for working capital and general corporate purposes, also expected to be fully deployed by year-end 2026.

Shareholding impact: • Total issued shares increased from 159.56 million to 161.82 million. • Domestic shares remain unchanged at 78.99 million, now representing 48.82% of total capital. • H shares rose to 82.82 million, lifting their proportion to 51.18%. • Founder and Chairman Ying Zhenkai’s direct domestic holding diluted from 20.24% to 19.96%.

Recent fundraising activity: • IPO on 30 September 2025 raised net RMB 815 million (approximately HK$894 million). • A separate placement on 6 May 2026 yielded net proceeds of HK$113.61 million; these funds remain unutilised, designated for AI development and working capital.

The board confirmed that public-float requirements continue to be met following completion of the placement.

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