Zhitong Finance App News, Asia Securities Real Estate (00271) issued an announcement. The board of directors proposed merging every 10 existing shares issued in the company's share capital into 1 consolidated share in the company's share capital. The board of directors proposed changing the trading unit for each lot traded on the Stock Exchange from 1,000 existing shares to 5,000 consolidated shares after the share merger comes into effect and under its regulations.
After the share merger comes into effect, the company proposes to raise up to HK$151 million in total proceeds by issuing 124 million shares (assuming that there is no change in the number of shares issued on or before the record date and that all eligible shareholders have subscribed to all of their respective allotted shares) at the subscription price of HK$1.22 per share of the consolidated share held on the record date. Assuming that the shares are fully subscribed, the net proceeds from the share offering are expected to be around HK$149.6 million. The amount is to be applied as follows: (i) approximately HK$100 million (equivalent to approximately 66.86% of the estimated net proceeds from the share offering) will be used to repay part of the Group's bank loans; (ii) approximately HK$30 million (equivalent to 20.06% of the estimated net proceeds from the share offering) will be used to expand the Group's property investment business; (iii) approximately HK$19.56 million (equivalent to approximately 13.08% of the estimated net proceeds from the share offering) General working capital.