DL HOLDINGS GP's large transaction fell by 11%, with an 11% discount, raising nearly 960 million from the old-to-new placement

DL HOLDINGS GP (01709.HK) opened down 8.7% this morning (21st), with the decline widening in the early session, hitting a low of HKD 3.03. It is currently reported at HKD 3.05, down 11.34%, with trading volume surging to HKD 1.041 billion.

The group announced before the market opened this morning that it plans to place a total of 255 million shares in a way that prioritizes old shares over new ones, accounting for approximately 15.15% of the company's existing issued share capital and about 13.16% of the expanded issued share capital, with a placement price of HKD 3.05 per share, representing a discount of approximately 11.34% compared to the previous closing price of HKD 3.44 per share. The company has also entered into an agreement with the subscriber Evergreen Wealth Investment Limited to issue up to 63.803 million new shares at HKD 3.05 per share, accounting for approximately 3.18% of the expanded issued share capital.

The net proceeds are expected to reach HKD 956 million, which the company will use to expand its Bitcoin mining and digital reserve business, develop and tokenize RWA products, and for strategic and diversified investments to support expansion in digital finance, virtual assets, and RWA tokenization business, as well as Bitcoin mining and related infrastructure development, enhancing asset construction and allocation capabilities, and strengthening recurring income sources