Gelonghui, March 20 | Lianlian Digital (02598.HK) announced that the company plans to sell 55.92 million shares globally, 5.592 million shares in Hong Kong, China, 50.32 million shares, and 15% over-allotment rights; shares will be offered from March 20 to March 25, 2024, with an expected pricing date of March 26; the sale price will be HK$10.21-10.95 per share, 500 shares per lot; CICC and J.P. Morgan Chase are joint sponsors; it is expected that the shares will be traded on March 28, 2024 Lord Listed on the board.

The company is a digital payment solution provider in China, with global payment capabilities to serve customers around the world. The company provides digital payment services and value-added services to enable global trade activities and improve the efficiency of capital and information flows. The company's customers are mainly commercial customers, including small and medium-sized businesses and enterprises. Globally, the company helps merchant customers transfer funds obtained from selling products and providing services back to China, and realizes fast and reliable payments through virtual accounts distributed by the company to customers under accounts endorsed by global commercial banks. In China, the company mainly acts as a payment service provider. By providing a digital platform for enterprise customers, the company integrates payment information from various online and offline payment methods initiated by terminal buyers when purchasing products to help enterprise customers simplify their payment process and reduce operating costs. The company's services ultimately facilitate the completion of the payment process.

The company has signed a Cornerstone Investment Agreement. According to this, Cornerstone investors agree (if certain conditions are met) to subscribe or induce their designated entities (including qualified domestic institutional investors approved by relevant Chinese authorities) to subscribe for a certain number of shares for sale, with a total purchase amount of HK$364.8 million (approximately US$46.6 million). Assuming an offer price of HK$10.58 (that is the median of the indicative offer price range set out in this prospectus), the total number of shares to be subscribed by Cornerstone investors will be 344.78 million shares. Cornerstone investors include Hangzhou City Investment Industry Development Investment Partnership (Limited Partnership) (“Hangzhou City Investment”) and Hangzhou Gaoxin Venture Capital Co., Ltd. (“Hangzhou Hi-Tech”).

The Company estimates that, assuming an offering price of HK$10.58 per share (that is the median of the indicative offer price range as described in this prospectus), the net proceeds from the global offering will be approximately HK$485 million (assuming that the over-allotment rights and offer volume adjustment options are not exercised), or HK$668.4 million (if the offer volume adjustment option and over-allotment rights are fully exercised). The company plans to use about 60.0% of the net proceeds to improve the company's technical capabilities over the next five years; about 30.0% will be used to expand the company's global business operations within the next five years; about 5.0% will be used for future strategic investments and acquisitions within the next five years to enrich the company's services and products, enhance the company's technical capabilities, and strengthen the company's international business; and about 5.0% is expected to be used for general corporate purposes and working capital requirements.