Canggang Railway (02169) plans to discount about 7.29% and issue 600 million shares to raise about HK$299.2 million

According to Zhitong Finance App, Canggang Railway (02169) announced that on September 29, 2026, the company plans to allocate and issue 600 million shares to the subscriber (Hebei Cangzhou Traffic Control Group Co., Ltd.), accounting for about 15.00% of the company's issued share capital at the date of this announcement; and about 13.04% of the company's issued share capital after expanding the issuance and issuance of subscribed shares. The subscription price was HK$0.50065 per share, a discount of approximately 7.29% from the closing price of HK$0.5400 per share on September 28. The total proceeds from the subscription will be approximately HK$300.4 million, and the net proceeds from the subscription are estimated to be approximately HK$299.2 million.

The company plans to use the net proceeds from the subscription as follows: (i) Approximately 87% of capital expenses and other related expenses to build necessary railways, road freight and/or supporting facilities to connect Huanghua Port to relevant railway stations on the Group's Canggang Line, including but not limited to the construction, purchase, upgrade or improvement of railway connection facilities, deployment of AI-driven traffic infrastructure and facilities or other road connection arrangements, and development of cargo yards, handling facilities, dispatch and control systems and other supporting infrastructure; (ii) Approximately 10% to upgrade and transform railway turnouts on the Canggang Line, including turnouts and Replacement, improvement and related installation works of railway supporting facilities to improve operational safety, transportation efficiency and line capacity; (iii) Approximately 3% is used to upgrade and enhance the Group's existing intelligent dispatch system and computer railway signal system on the Canggang Line, including replacing, optimizing or improving related hardware, software and communication equipment to enhance system compatibility, testing, debugging and other related expenses to improve the Group's scheduling efficiency, signal reliability and digital operation capabilities.