Zitong Financial App News, Heng Wei Group Holdings (08219) issued an announcement that the company proposes to issue rights shares at a subscription price of HK $0.22 per rights issue on the basis of one rights issue for every 2 shares held on the record date, raising HK $11 million by issuing 50 million rights shares to eligible shareholders. The rights issue shares are equivalent to about 33.33% of the issued share capital of the company after allotment and expansion; the subscription price is HK $0.22 per share, which is about 22.81% off the closing price of HK $0.285 per share on the last trading day.
The maximum net income from the rights issue is estimated to be about HK $10 million. The company intends to use about 70 per cent of the net proceeds from the proposed rights issue to repay group bank loans and loans, and about 30 per cent of the net proceeds as general working capital of the group.