Shougang Cent (00103.HK) announced that the company proposes a rights issue, with a basis of five (5) existing shares held on the record date for every one (1) share of rights issue shares, at a subscription price of HKD 0.33 per share of rights issue shares, to issue up to 391,676,365 shares of rights issue shares to eligible shareholders (assuming no change in the number of shares issued on or before the record date), in order to raise a maximum of approximately HKD 0.129 billion (before deduction of expenses). The rights issue is only available to eligible shareholders and will not be extended to ineligible shareholders.
Assuming all the shares of rights issue are subscribed, the net proceeds from the rights issue (after deducting miscellaneous expenses) are estimated to be approximately HKD 0.128 billion (assuming no change in the number of shares issued on or before the record date). The net price per share of rights issue shares (after deduction of the rights issue cost and expenses) is estimated to be approximately HKD 0.327. The director currently intends to use the net proceeds (approximately HKD 0.128 billion) for general working capital and repayment of the group's unsecured/secured loans.
