Zhejiang, Shanghai-Hangzhou-Hangzhou (00576) announced that the company has recently obtained written approval from the China Securities Regulatory Commission on the registration of domestic shares (“Approval on the registration of shares issued to specific targets by Zhejiang Shanghai-Hangzhou-Ningbo Expressway Co., Ltd.” (Securities Regulatory License [2023] No. 2473), which relates to the approval of the China Securities Regulatory Commission for domestic stock registration.
According to the announcement, the H share offering is based on the shares held by eligible H share shareholders on the H share registration date. The stock price of HK$4.06 per H share is reduced by about 32.11% from the closing price of HK$5.98 per H share on November 3, 2023, according to the basis that 3.8 H-shares are issued for every 10 existing H shares. The domestic stock offering is based on the shares held by eligible domestic shareholders on the domestic share registration date. The stock offering price of RMB 3.73 per domestic share is carried out on the basis that 3.8 domestic shares are issued for every 10 existing domestic shares. The purpose of the stock offering ratio is to balance capital requirements and market acceptance, and reduce the dilution impact of this stock offering on existing shareholders.
The stock offering (including domestic shares and H shares) is estimated to raise a total capital of approximately RMB 6.15 billion, with a net amount of approximately RMB 6.12 billion.