Chinasoft International Ltd (CFTLF)

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China Software International (00354.HK) intends to place up to 162 million shares to raise a total of 1.986 billion Hong Kong dollars.

source
https://cj.sina.com.cn/articles/view/5115326071/130e5ae7702001hc1c

October 5, 2021

China Software International (00354.HK) issued an announcement that on October 4, 2021, the company and the placing agent (ie UBS Group) entered into a placing agreement. According to the placing agreement, the company conditionally agreed to place up to a total of 162 million placing shares to no less than six placees through a placing agent on a best-effort basis at a price of HK$12.26 per placing share.

Assuming that the placing is fully completed, the upper limit of the number of placing shares is 162 million, which is equivalent to approximately 5.57% of the company’s existing issued share capital; and approximately 5.28% of the issued share capital expanded by the allotment and issuance of the placing shares. The placing price of HK$12.26 per share represents a discount of approximately 9.85% to the closing price of HK$13.60 on the date of the placing agreement.

Assuming the successful placement of all the placement shares, the total proceeds from the placement is estimated to be approximately HK$1.986 billion, and the net proceeds are approximately HK$1.970 billion. The company intends to use the net proceeds from the placement for: (i) the research and development of full-stack cloud smart products and solutions, as well as investment and mergers related to the company's main business, to further enhance the company's technical capabilities and improve the overall business layout; ii) Create Hongmeng hardware and software products and solutions, develop full-stack technologies required for atomization services, conduct investment and mergers around Hongmeng's industrial ecology, and become Hongmeng's ecological leader; and (iii) the company's general working capital.