On August 1, 2024, Ubtech announced that the company had entered into a subscription agreement with underwriters (Guotai Junan International and TradeGo Markets) according to which the underwriters had agreed, as agents (individually but not jointly or jointly and severally), to use their best efforts to procure subscribers to subscribe for a total of 1.42 million new H shares at the subscription price of HKD 92.00 per H share in accordance with the terms of the subscription agreement and within the specified time limit.
The shares placed represent approximately 0.34% of the issued share capital of the Company as at the date of this announcement, and approximately 0.34% of the enlarged issued share capital of the Company after the placing and the issue of the placing shares. The placing shares are expected to be placed to not less than six placees, each of whom is independent of the Company and its connected persons and who has no connection with each other. The Directors believe that the Placing is for the continuous optimization and iteration of the Group's products, the raising of substantial commercialization funds in the global market in the future, and the widening of opportunities for its shareholders and capital base.
The Company expects to receive an aggregate gross and net proceeds of approximately HKD 0.131 billion and HKD 0.122 billion, respectively, from the Placing. The net proceeds of the Placing are intended to be used by the Group for its business operation and development (including working capital, general corporate purposes and domestic and overseas investments) and for the repayment of the amounts due to the Group's credit facilities provided by relevant financial institutions (including the principal and accrued interest). The proceeds will be used by the Company and its subsidiaries.