Karrie International to issue HK$150m in convertible bonds to chairman

Karrie International Holdings Limited announced a connected transaction involving the proposed issuance of HK$150,000,000 unlisted convertible bonds to Ho Cheuk Fai, the company's executive director, chairman, chief executive officer, and controlling shareholder. The subscription agreement was signed on October 13, 2025, after trading hours, with the bonds carrying a 2.0% coupon rate per annum over a three-year maturity period.

The initial conversion price for the bonds is HK$2.30 per conversion share. This represents a 7.26% discount over the closing price of HK$2.48 per share on October 13, 2025, and a 15.57% discount over the average closing price for the preceding five trading days. Upon full conversion, a maximum of 65,217,391 new shares would be issued, representing approximately 3.23% of the existing issued share capital and 3.13% of the enlarged share capital.

The net proceeds, estimated at HK$149,750,000, are intended to expand the group's overseas production capacity through new machinery purchases, plant construction in Thailand, and potential acquisitions to meet increasing orders. Completion is subject to shareholder approval and other conditions.