According to Zhitong Finance App News, Pelida Group Holdings (08179) issued an announcement. The board of directors proposed a share capital restructuring, which will involve share consolidation, share capital reduction and share segmentation as follows: existing shares will be merged according to the following method: existing shares will be consolidated according to the consolidated shares with a face value of HK$0.1 per share in each 50 shares of the company's share capital into a consolidated share with a face value of HK$5.0 per share in the company's share capital.
Following the entry into force of the share merger, the share capital reduction will be carried out. Accordingly: (a) the face value of each issued consolidated share will be reduced from HK$5.0 to HK$0.001 by cancelling the company's paid up share capital up to HK$4.999 for each consolidated share issued at the time; (b) any fragmented consolidated shares in the company's issued share capital resulting from the share merger will be cancelled. Approximately HK$190.7 million in revenue from the reduction in share capital will be transferred to the company's distributable reserve account. The distributable reserves will be used by directors for all purposes permitted by applicable law and the company's Memorandum and Articles of Association.
Following the share capital reduction taking effect, each statutory but unissued consolidated share with a face value of HK$5.0 will be split into 5,000 new shares with a face value of HK$0.001 per share. The new shares will each enjoy equal status in all aspects, and the share capital restructuring will not result in any change in the shareholders' relative rights.
The board of directors proposed changing the trading unit for each lot traded on the Stock Exchange from 12,000 existing shares to 5,000 new shares, subject to restrictions and subject to the share merger taking effect. After the share capital reduction and share subdivision take effect, each trading unit traded on the Stock Exchange will still be 5,000 new shares.
The company proposes to provide shares at a subscription price of HK$0.25 per share for every 2 new shares held on the record date, to raise up to about HK$4.77 million by issuing up to 19.088 million shares (assuming that the company's share capital did not change on or before the record date). The maximum net proceeds from the stock offering are approximately HK$4.32 million. Assuming that all of the shares have been subscribed, the company plans to use the following net proceeds: The net proceeds of approximately HK$2.5 million will be used to repay the written down outstanding principal amount of a loan from an independent non-financial institution. The remaining approximately HK$1.82 million will be used as the Group's general working capital.