Chunneng Holdings (08430) proposes to implement a capital restructuring to issue shares according to the “1 for 5” basis

Zhitong Finance App News, Chunneng Holdings (08430) announced that the board of directors proposed capital restructuring, including proposed share mergers, share capital cuts, and detailed divisions.

The stock consolidation standard is “5 in 1”. The share capital reduction was to reduce the face value of each issued consolidated share from HK$1.00 to HK$0.01. Following the share capital reduction, each authorized but unissued consolidated share with a face value of HK$1.00 per share in the company's authorized share capital will be split into 100 statutory but unissued adjusted shares with a face value of HK$0.01 per share.

The Board recommended that, after (including) the capital restructuring comes into effect, issue a maximum of approximately 167 million shares on a “1 to 5” basis, with a maximum net raise of HK$39.8 million, to be used to (i) pay rent expenses and management expenses under its existing lease commitments; (ii) pay the salaries of Group employees; and (iii) the working capital of the existing business.