According to the Zhitong Finance App, Cambridge Technology (06166) announced that the company and the joint placement agent entered into a placement agreement on October 8, 2026 (before the trading period) to place 184.46 million placement shares, HK$105.16 per share through a joint placement agent. The closing price of HK$114.30 per H share reported on the Hong Kong Stock Exchange on the last trading day was discounted by approximately HK$8.00%.
On the same day, the company signed a subscription agreement with the manager. According to the agreement and subject to certain conditions contained therein, the company has agreed to issue, and each manager has individually (not jointly, nor jointly and individually) agreed to subscribe and pay, or prompted the subscriber to subscribe and pay for bonds with a total principal amount of RMB 3.96 billion. Bonds can be converted to H shares at the initial conversion price of HK$128.82 per H share (subject to adjustment) as set out in the terms and conditions. The initial conversion price is approximately 12.70% premium over the closing price of HK$114.30 per H share reported by the Hong Kong Stock Exchange on the last trading day.
After the issuance of the bonds is completed, the total proceeds from the bond subscription will be approximately HK$4.635 billion. After deducting the estimated expenses payable from the issuance of the bonds, the net proceeds from the bond subscription will be approximately HK$4.606 billion. The company will apply to the Vienna MTF operated by the Vienna Stock Exchange to approve the listing of bonds, and will apply to the Hong Kong Stock Exchange for H shares to be issued after the conversion of the bonds.
After taking into account the industry background and the company's strategic plan, the company plans to use about 55% of the total net proceeds from placement matters and bond issuance to increase the production capacity of optical module products, about 30% to make strategic investments in selected upstream enterprises, and about 15% for general corporate purposes and to supplement the Group's working capital.