Shandong Molong Petroleum Machinery ( (HK:0568) ) just unveiled an update.

Shandong Molong Petroleum Machinery has entered into a placing agreement on 21 July 2026 with a sole placing agent to issue new H shares under its general mandate. The agent will place the shares on a best-efforts basis to at least six independent professional, institutional or other investors, subject to specified termination rights and regulatory filings.

Assuming all placing shares are fully placed, the transaction is expected to raise gross proceeds of about HK$117.61 million and net proceeds of approximately HK$115.68 million. Around 90% of the funds will be used to strengthen the group’s financial structure by repaying outstanding borrowings, with the remainder for working capital and general corporate purposes.

The new H shares will represent roughly 10.03% of existing H shares and 3.22% of total issued shares before the placing, and about 9.11% of H shares and 3.12% of total shares after enlargement. The company will apply for listing and trading of the new shares on the Stock Exchange and complete required CSRC filings, while cautioning shareholders and potential investors that completion of the placing may or may not proceed.