Sinotang Holdings to Offer 18.7% Discounted Shares; Maximum Net Proceeds Estimated at HK$4,870 Million

Sinotang Holdings (08305) released an announcement, on August 18, 2025, proposing to issue a maximum of 252 million shares for sale, accounting for approximately 16.67% of the company's issued share capital and total outstanding shares after issuance. The issue price of the shares is HK$0.20 per share, representing a discount of around 18.7% compared to the closing price of HK$0.246 on August 18.

Assuming the sale is completed and the sale agent successfully sells all the issued shares, the estimated maximum total proceeds are expected to be HK$50.4 million, with net proceeds estimated at around HK$48.7 million after deducting brokerage commissions and other relevant expenses. The company plans to use the net proceeds from the sale for: approximately HK$19.7 million for business operations and potential expansion of the group's building materials business; approximately HK$17 million for development of the group's dairy products distribution business segment; approximately HK$0.4 million to repay existing bank loans; and approximately HK$8 million for general working capital of the group.