China Huajun Moves to Restore Public Float Through Share Subscription and Restructuring Scheme

The latest update is out from China Huajun Group Limited ( (HK:0377) ).

China Huajun Group Limited has disclosed that its public float has been below the 25% minimum required under the Hong Kong Listing Rules since 26 April 2021, after Ouke Group Holdings Limited’s shareholding rose above 10%, making Ouke a substantial shareholder and core connected person whose shares could no longer be counted as public float. The company emphasised that this shortfall stemmed solely from Ouke’s increased holding, which was outside its control, and that the public float has remained above 15% during the period. To address the float deficiency, China Huajun entered into a subscription agreement to issue 12 million new shares at HK$1 each, which will dilute Ouke’s stake from about 10.69% to 8.95%, reclassifying Ouke as a public shareholder and raising the public float to about 22.06% of the enlarged share capital. In parallel, the company plans to issue 24.6 million scheme shares to creditors under a restructuring scheme, representing roughly a quarter of the fully enlarged share capital, with adjudication of creditor claims ongoing and completion of the share allotment expected around June 2026, collectively positioning the group to restore regulatory compliance on public float and complete its capital restructuring.

The most recent analyst rating on (HK:0377) stock is a Hold with a HK$0.91 price target. To see the full list of analyst forecasts on China Huajun Group Limited stock, see the HK:0377 Stock Forecast page.

More about China Huajun Group Limited

China Huajun Group Limited is a Bermuda-incorporated company listed on the Hong Kong Stock Exchange (Stock Code: 377). The announcement focuses on its shareholding structure and compliance with Hong Kong Listing Rules regarding public float, rather than detailing its underlying operating businesses or products.

Average Trading Volume: 2,815

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$56.62M

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