Xinming China plans capital reorganisation, rights issue

Xinming China Holdings (HKEX:2699) is set to undertake a capital reorganisation involving a share consolidation, capital reduction, and share subdivision. The company proposes a non-underwritten rights issue, offering four rights shares for every one adjusted share held on the record date, with the subscription price at HK$1.12 per share. This move aims to raise approximately HK$84.2 million before expenses, with net proceeds primarily targeted for settling outstanding liabilities and bolstering working capital. The firm plans to offset its accumulated losses with the credit arising from the capital reduction. An extraordinary general meeting (EGM) will be convened on March 13, 2025, for shareholders to vote on the proposed changes. Trading in the rights shares in nil-paid form are expected to take place from April 30, 2025 to May 9, 2025 (both days inclusive).