The CNY 100 million rights issue was successfully completed, with oversubscription exceeding 30%.
Release date:
Mar 07,2019
On March 6, 2019, the board of directors of Chenxing Development (stock code 2286.HK) announced that the company’s HK$100 million rights issue plan had been successfully completed.
2019 Year 3 Month 6 Day, Chenxing Development (stock code 2286.HK The Board of Directors announced that the Group’s CNY 100 million rights issue plan has been successfully completed.
This rights issue is structured on a "5-for-1" basis (for every 5 existing shares held, shareholders are entitled to subscribe for 1 right share), with the subscription price set at HKD 1.5 per right share.
Based on the subscription results, the rights issue was oversubscribed by 30.8966 million shares, representing approximately 30.9% of the total 99.999989 million shares available for subscription under the rights issue. The net proceeds from this rights issue are estimated at around HK$150 million. A total of 28 valid acceptances and applications were received, covering 131 million shares—equivalent to roughly 130.9% of the total number of shares available for subscription under the rights issue. Under the terms of the exclusive underwriting agreement, the underwriter has been fully discharged from its obligation to underwrite the offered shares, and thus is not required to purchase any of the underwritten shares.
The fully paid-up rights issue shares will commence trading on the Hong Kong Stock Exchange at 9:00 a.m. sharp on Friday, March 8, 2019.
Chenxing Development deeply appreciates and values the participation and trust investors have shown in this rights issue. Leveraging Hong Kong's capital markets, the Group is fully confident in its ability to continue delivering even greater success—rewards that benefit both investors and society as a whole.
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