STOCKS | Kexuan Power Raises HK$65.3 Million In Share Placement

Kexuan Power (00476) said it will place 99 million new shares to four subscribers at HK$0.66 each, raising gross proceeds of about HK$65.3 million and net proceeds of about HK$65.1 million, according to ETNet. The placement price represents a 4.8% premium to the previous trading day's close. The new shares will account for about 21.8% of the enlarged share capital. Subscriber D is controlled 60% by Ho Siu-wing, who was recently moved from independent non-executive director to non-executive director, making the deal a connected transaction that requires approval from independent shareholders. After completion, Sing Chuang Investment will remain the controlling shareholder. Kexuan Power said HK$32 million of the proceeds will be used to seek strategic development opportunities and expand its electric commercial solutions business, HK$22 million will go toward repaying financial liabilities, and HK$11.1 million will be used as general working capital. The company also announced Ho Siu-wing's re-designation from independent non-executive director to non-executive director.