Associated Press (02671)'s December 18 to December 23 offering is expected to be listed on December 30

According to the Zhitong Finance App, Midland Holdings (02671) will be offered shares from December 18 to December 23, 2025. The company plans to sell 22.5 million shares globally, of which Hong Kong sales account for 10%, international sales account for 90%, and 15% over-allotment rights, with a sale price of HK$7.10-9.16 per share. Each lot is 300 shares, and it is expected that the shares will start trading on the Stock Exchange on December 30, 2025.

The company is a comprehensive precast steel construction subcontract service provider for the industrial sector of the prefabricated steel structure construction market. The company provides comprehensive services for construction projects in various industries, covering project design and optimization, procurement, manufacturing and installation. The company is mainly engaged in the construction of prefabricated steel structures in China (followed by overseas). With technology and expertise, the company has established a good reputation in the industrial sector of the Chinese prefabricated steel construction market. According to the Frost & Sullivan report, in terms of revenue in 2024, the company ranked third in the industrial sector of China's precast steel construction market, with a market share of 3.5%; the market shares of the two major players were 35.8% and 6.5%, respectively.

According to the Frost & Sullivan report, the industrial sector of the precast steel construction market includes the design, production and installation of steel building components, providing superior efficiency, strength, and adaptability in industrial, commercial, and residential applications. In the industrial field, prefabricated steel structures are particularly valued because they can meet the needs of large-scale construction, achieve rapid assembly and installation, and have the ability to expand, and are the best choice for modern industrial buildings. The company provides tailor-made integrated prefabricated steel structure construction subcontracting services to meet diversified project needs, which is recognized by various sectors, and the company's “Midland Steel Structure” brand is also recognized by the industry and market.

The Company has entered into a Cornerstone Investment Agreement with Caiyun, Tiny Jade, Mr. Wu Xinghua, and Logic Selective. Subject to certain conditions, Cornerstone investors have agreed to subscribe at the offer price or facilitate their designated entities to subscribe for a total of approximately HK$51.5 million in the relevant offering shares.

Assuming an offering price of HK$8.13 per H share and that the over-allotment rights are not exercised, the company estimates that the net proceeds from the global sale will be approximately HK$164 million. If the over-allotment rights are fully exercised, and assuming that the offering price of each share offered is HK$8.13, the company will receive an additional net proceeds of approximately HK$28.8 million. The company plans to use the net proceeds from the global sale for the following purposes: approximately 37.7% of the net proceeds will be used for capital investment, including the construction of production facilities and the purchase of equipment to enhance the company's production capacity and operational efficiency; approximately 26.7% of the net proceeds will be allocated to fund advance expenses related to new projects; approximately 12.3% of the net proceeds will be used to strengthen the company's sales and marketing development; approximately 9.3% of the net proceeds will be reserved for selective acquisitions and investments aimed at strengthening the company's supply chain and enhancing the company's technical capabilities; net proceeds Approximately 9.0% of the amount will be allocated to enhance the company's R&D capabilities, focusing on product and technology improvements; approximately 5.0% of the net proceeds will be allocated to working capital and general corporate purposes to support the company's daily operations and maintain financial flexibility.