Haowen Holdings (08019) plans to consolidate shares on a “4 merge 1” basis and a “1 to 3” benchmark share offering

According to Zhitong Finance App, Haowen Holdings (08019) issued an announcement. The directors proposed a share merger. The basis is the merger of issued and unissued shares with a face value of HK$0.01 per 4 shares into a consolidated share with a face value of HK$0.04 per share. Stock consolidation is subject to approval by shareholders (including) at the Extraordinary General Meeting of Shareholders.

As of the date of this announcement, the trading unit for each lot of existing shares traded on the Stock Exchange was 20,000 existing shares. The board of directors recommended that after the share merger comes into effect, the trading unit for each lot traded on the Stock Exchange will be changed from 20,000 existing shares to 10,000 consolidated shares.

The Company proposes to raise up to HK$61.4 million (without deducting fees) after the share merger comes into effect, at the subscription price of HK$0.23 per share held for each consolidated share held on the record date to issue a maximum of 267 million shares offered to eligible shareholders (assuming that there is no change in the issued share capital of the Company on or before the record date, and that all eligible shareholders have offloaded their allotted shares). The share offering will not be extended to ineligible shareholders (if any).

The net proceeds from the share offering (after deducting estimated costs) are estimated to be approximately HK$59.1 million (assuming that there is no change in the issued share capital of the Company on or before the record date, and that all eligible shareholders have taken down all of their allotted shares).