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Enerchina Holdings to raise HK$1.31B via rights shares

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Enerchina Holdings to raise HK$1.31B via rights shares

Enerchina Holdings Ltd plans to raise about HK$1.31 billion through the issuance of rights shares.

The company plans to issue up to 2,920,883,141 rights shares at 45 Hong Kong cents per share to qualifying shareholders. They will be issued on the basis of one rights share for every existing share.

Enerchina is conducting the issuance to replenish the group's working capital and to increase its total asset value and net asset value. The net proceeds from the issuance, after deducting the related expenses, is estimated at up to about HK$1.27 billion.

Approximately HK$500 million of the proceeds will be be used for the business development of the group's financial services, while about HK$351 million will be used for the repayment of the outstanding principal and interest of the group's loans. In addition, about HK$100 million will go toward operating expenses, while the remainder will be used to finance any investment opportunities that may arise.

The record date for the issuance is July 4 and the company will announce the allotment results July 26. The company will commence dealings in the right shares, which will be listed on the Stock Exchange of Hong Kong, July 30.

The issuance is subject to approval from from the company's shareholders.