Fengsheng Holdings (00607) announced that on May 19, 2022, the company entered into a placing agreement with the placing agent. The company plans to place up to 2955.8 million placing shares at the placing price of HK $0.10 per share (about 8.26% discount from the closing price of HK $0.109 on May 19), equivalent to about 15% of the issued share capital of the company on the date of this announcement; And about 13.04% of the issued share capital expanded by the allotment and issuance of allotment shares.
Assuming that all the placing shares are fully placed, the upper limit of the total proceeds from the placing is expected to be about HK $295.6 million. The upper limit of the net proceeds from the placement is expected to be about HK $294.7 million, which is intended to be used to repay the group’s loans, general working capital and future business opportunities and investments.
