Shandong Molong Petroleum Machinery Company Limited (ASX: 00568) has announced the signing of a placement agreement with a placing agent. The agreement, executed after trading hours on July 21, 2026, stipulates the issuance of 25,678,400 new H shares, each with a par value of RMB 1.00.
The company has agreed to issue the placement shares at the placement price, while the placing agent has agreed to act as the company's agent on a best-efforts basis to procure subscribers to purchase the shares at that price. The placement shares will be allotted and issued under a general mandate.
Assuming the placement shares are fully subscribed, the gross proceeds from the placement are expected to be approximately HK$118 million. After deducting commissions and estimated expenses, the estimated net proceeds are expected to be around HK$116 million.
The company intends to use the net proceeds from the placement for the following purposes: approximately 90% will be used to repay outstanding borrowings to optimize the group's financial structure, and the remaining approximately 10% will be allocated for working capital and general corporate purposes.
If all placement shares are fully subscribed, they will represent approximately 10.03% of the existing issued 256 million H shares and about 3.22% of the total issued share capital as of the announcement date. Assuming no other changes to the issued share capital from the announcement date until the completion of the placement, the placement shares will constitute approximately 9.11% of the issued H shares and about 3.12% of the total issued share capital as enlarged by the allotment and issuance of the placement shares.
The total par value of the placement shares under the placement is RMB 25,678,400.
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