Gelonghui November 20 | China Shenghai Group (01676.HK) announced that on November 20, 2023, the placement agent signed a placement agreement with the company. The company plans to place a maximum of 24 million shares, which is equivalent to (i) 20.00% of the company's existing issued shares at the date of this announcement; and (ii) the company's issued share capital increased by about 16.66% after allotment and issuance of all placed shares.
The placement price is HK$1.80 per placed share, a discount of approximately 5.26% from the closing price of HK$1.90 per share reported on the Stock Exchange on the date of the placement agreement.
The net proceeds from the placement event are estimated to be approximately HK$42.3 million. The directors intend to use the net proceeds from the placement event as the general working capital of the Group.