Fengsheng Holdings (00607. HK) announced that on May 19, 2022, the company plans to place up to 2.956 billion shares to no less than six assignees, accounting for about 13.04% of the shares of the expanded company. The allotment price per share was HK $0.10, a discount of about 8.26% from the closing price on May 19.
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 $296 million. The upper limit of the net proceeds from the placement is expected to be about HK $295 million. The net proceeds are intended to be due to the repayment of the group’s loans and general working capital, as well as future business opportunities and investments.
The directors believe that the placement can (I) enhance the financial position of the group; (II) raising additional funds for future investments; And (III) providing general working capital for the group. The placement also provides a good opportunity to expand the company’s shareholder base and capital.
