ZHONGAN SERVICE offers a 16% discount on its placement, netting CNY 77.69 million

ZHONGAN SERVICE (02271.HK) announced that it plans to place up to approximately 51.741 million shares to no fewer than six placees, representing 9.09% of the enlarged issued share capital, at a placement price of HKD 1.52 per share, a discount of 16.02% to the last closing price of HKD 1.81. The total proceeds from the placement amount to HKD 77.69 million, which will be used for general working capital.

Upon completion of the placement, the shareholding of ZHONGAN, the parent company of ZHONGAN SERVICE, will be diluted from approximately 71.28% to approximately 64.8%, which constitutes a deemed disposal under the listing rules. However, ZHONGAN SERVICE will still remain its indirect non-wholly-owned subsidiary, and its performance will continue to be consolidated into the group accounts. The company stated that this placement could introduce quality investors, broaden the shareholder base, and enhance share liquidity, helping to stabilize the equity structure and support long-term development. The board believes that the terms are fair and reasonable and in the overall interests of the shareholders