First Value Industrial Finance (00730) plans to “50 and 1” consolidated shares and a “1 for 1” benchmark share offering

Zhitong Finance App News, Shouhui Industrial Finance (00730) issued an announcement. The board of directors proposed implementing the share merger according to the benchmark of merging every 50 existing shares issued into 1 consolidated share. Stock mergers are subject to approval by shareholders (including) by voting at the Extraordinary General Meeting of Shareholders.

As of the date of this announcement, 3,953,938,703 existing shares have been allocated and issued. After the share merger comes into effect, and assuming that there is no change in the number of issued shares from the date of this announcement until the effective date of the share merger, the number of consolidated shares issued will be 79,078,773 shares.

The Company proposes to raise up to HK$494.2 million in total proceeds of approximately HK$494.2 million (assuming that the number of consolidated shares issued on or before the record date) is issued for each consolidated share held at a subscription price of HK$6.25 (assuming that there is no change in the number of consolidated shares issued on or before the completion of the offering).

The net proceeds from the share offering (after deducting all related expenses) are estimated at a maximum of approximately HK$488.2 million (assuming that the shares are fully subscribed; there is no change in the number of consolidated shares issued on or before the record date, and no new consolidated shares (other than shares offered) will be allocated and issued on or before the share offering is completed. After deducting expenses related to the offering, the net price of each share offered will be approximately HK$6.17. The Company intends to use approximately 50% of the net proceeds from the share offering to potentially acquire companies or businesses similar to and/or complementary to the Group's existing main business when appropriate opportunities arise; approximately 35% for the development and expansion of the Group's main business, including deepening existing product and service capabilities, expanding customer solutions, and enhancing overall business capabilities; and approximately 15% to supplement the Group's general working capital.