Chow Tai Fook announced this morning (Jan. 16) its proposal to issue HK$780 million of 4% convertible bonds maturing on July 22, 2025, with net proceeds expected to be approximately HK$769 million.
The initial conversion price for the bonds is set at HK$8.043 per share, representing a 5% premium over the last closing price of HK$7.66. This would allow for the conversion of approximately 96.98 million new shares, accounting for about 2.4% of the enlarged share capital.
The company indicated that the net proceeds from the bond issuance will be used for general corporate purposes, including but not limited to replenishing working capital and repaying part of the group's debt principal and interest.
The announcement also noted that the company's public float is approximately 23.83%, slightly below the listing rules requirement. Therefore, the board believes that issuing these bonds is a suitable measure to restore compliance with the public float requirement.
Chow Tai Fook stated that this initiative aims to meet the public float requirements under the listing rules while providing additional funding at a lower financing cost, without immediately diluting existing shareholders' equity. If the bonds are converted into new shares, it will strengthen the company's capital base, benefiting long-term development.
Related News:
Photos | Microfilm Premiere for Strive and Rise Programme held today
Comment