Anchorstone Plans Major Capital Increase and Non-Underwritten Rights Issue to Raise up to HK$121.6 Million

Anchorstone Holdings Limited ( (HK:1592) ) has issued an announcement.

Anchorstone Holdings Limited plans to increase its authorised share capital from HK$50 million to HK$400 million by creating an additional 3.5 billion shares, all ranking pari passu with existing shares, subject to shareholder approval at an extraordinary general meeting. The company is also launching a non-underwritten rights issue on the basis of four rights shares for every one existing share at HK$0.105 per rights share, seeking to raise up to about HK$121.6 million before set-off and expenses, with estimated net proceeds of up to approximately HK$62.5 million depending on shareholder take-up. Rights shares will be provisionally allotted to qualifying shareholders only, will rank equally with existing shares and entitle holders to future distributions, while any unsubscribed or excluded shareholders’ rights shares will be placed to independent investors on a best-effort basis, with any remaining unsold shares not being issued and the rights issue size reduced accordingly. As the issue is non-underwritten and has no minimum subscription, the company has built in a scaling-down mechanism to prevent any shareholder, other than HKSCC Nominees, from unintentionally triggering a mandatory general offer under the Takeovers Code, reflecting a cautious approach to capital-raising that balances funding needs with regulatory and shareholder considerations.

The most recent analyst rating on (HK:1592) stock is a Sell with a HK$0.19 price target. To see the full list of analyst forecasts on Anchorstone Holdings Limited stock, see the HK:1592 Stock Forecast page.

More about Anchorstone Holdings Limited

Anchorstone Holdings Limited is a Hong Kong-listed company incorporated in the Cayman Islands, with its shares traded on the Main Board of the Stock Exchange of Hong Kong under stock code 1592. The announcement concerns its equity capital structure and financing plans, indicating an effort to expand authorised share capital and raise funds through a rights issue to support its ongoing operations and strategic needs.

Average Trading Volume: 1,316,410

Technical Sentiment Signal: Sell

Current Market Cap: HK$42.28M

For a thorough assessment of 1592 stock, go to TipRanks’ Stock Analysis page.