GF Securities (01776) plans to place 219 million new H shares and issue HK$2.15 billion bonds to raise more than HK$6.1 billion to set up international business

According to the Zhitong Finance App, Guangfa Securities (01776) announced that the company and the placement agent entered into a placement agreement on January 6, 2026 (after the trading period) to issue 219 million new H shares through the placement agent, with an placement price of HK$18.15 per share, a discount of about 8.38% from the closing price of HK$19.81 per H share reported on the Hong Kong Stock Exchange on January 6, 2026. The net proceeds from the placement of approximately HK$3,959 million are intended to increase capital for overseas subsidiaries to support the Group's international business development.

Furthermore, the company and the operator signed a subscription agreement on January 6, 2026 (after the trading period). Subject to the terms and conditions contained in the subscription agreement, the manager agreed to subscribe and pay or procure the subscribers' subscription and payment of bonds with a total principal amount of HK$2.15 billion to be issued by the company. Bonds can be converted to H shares as set out in the terms and conditions. The initial conversion price is HK$19.82 per H share (subject to adjustments). The net proceeds from the bond issuance will be approximately HK$2.154 billion. It is intended to increase capital for overseas subsidiaries to support the company's international business development.

The company will apply to the Vienna MTF operated by the Vienna Stock Exchange for approval to list the bonds. The company will apply to the Hong Kong Stock Exchange for the conversion of shares to be listed and traded on the Hong Kong Stock Exchange, comply with the regulations of the China Securities Regulatory Commission, and complete the China Securities Regulatory Commission filing relating to this bond issuance.