Alco Holdings has announced a non-underwritten rights issue that will offer shareholders four new shares for every existing share held on the record date of 28 May 2026.
The company will issue up to 229.11 million rights shares at HK$0.55 each, representing discounts of 20.30% to the 24 March closing price of HK$0.69 and 24.20% to the five-day average of HK$0.726. The theoretical dilution effect is estimated at 21.0%.
Gross proceeds could reach HK$126.00 million, with net proceeds of about HK$121.82 million after expenses. Alco intends to allocate approximately HK$50.00 million for repayment of an unsecured loan from Proyan Consultancy, HK$22.00 million to settle overdue payables to suppliers and service providers, HK$31.50 million for expanding Asia-Pacific sales channels and upgrading product development, and HK$18.32 million for general working capital.
The rights issue will proceed without underwriting regardless of subscription level. Any untaken shares, together with those attributable to non-qualifying shareholders, will be placed on a best-effort basis by Advent Securities (Hong Kong) at not less than the subscription price; unplaced shares will be cancelled, reducing the issue size accordingly. The placing agent will receive a 1.5% commission on shares successfully placed.
Key dates include: • 15 May 2026 – Special General Meeting to approve the proposal • 18 May 2026 – Last day of cum-rights trading • 29 May 2026 – Despatch of prospectus and provisional allotment letters • 2 June 2026 – First day of nil-paid rights trading • 12 June 2026 – Latest time for acceptance and payment • 14 July 2026 – Expected commencement of fully-paid rights share trading
Upon full subscription, Alco’s issued share capital will rise from 57.28 million to 286.39 million shares. Shareholders who choose not to participate will see their stakes diluted. The company confirms that it will maintain the minimum public float requirement after completion of the exercise.
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