The Zhitong Finance App learned that Global Strategy Group (08007) rose more than 21%. As of press release, it rose 21.74% to HK$0.42, with a turnover of HK$1.61 million. The stock price hit a new high.
According to the news, Global Strategy Group recently announced that on September 7, 2023, the company plans to place up to 91.172 million shares, which is equivalent to about 16.67% of the total number of issued shares after all allocations and expansion of issued and placed shares. The placement price was HK$0.245 per share, which is approximately 12.5% off the closing price of HK$0.28 per share on September 7.
Assuming that all of the placed shares were successfully placed by the placement agent, the maximum gross proceeds from the placement were estimated to be approximately HK$22.3 million, while the highest net proceeds from the placement were estimated to be approximately HK$21.5 million. The company intends to use the net proceeds from the placement to supplement the Group's working capital and bond repayment.
Liu Qihua, chief analyst of utilities in mainland China and Hong Kong at the UBS Investment Bank Research Department, said that due to the expected moderation of future capital expenses of local power companies in Hong Kong, an improvement in overseas investment returns, and an expected improvement in foreign exchange performance, such stocks have good investment value and are optimistic about local utility stocks in Hong Kong.