Scholar Education Group raises HK$242m through new share subscriptions

On October 15, 2025, Scholar Education Group entered into subscription agreements to issue 110,000,000 new shares at HK$2.2 per share, raising gross proceeds of HK$242.0 million and net proceeds of approximately HK$241.3 million. This subscription price represents a 13.04% discount to the closing price on the stock exchange on the date of the agreements and a 15.38% discount to the average closing price over the preceding five trading days. The subscription shares will account for approximately 19.47% of the company’s existing issued share capital and 16.30% of the enlarged issued share capital.

The net proceeds are earmarked for several key areas: HK$40.0 million (16.58%) will enhance teaching quality and student learning experiences, including recruiting staff, optimizing course content, renovating facilities, and purchasing equipment. A substantial HK$120.0 million (49.73%) is allocated for potential future projects in artificial intelligence related to the group’s principal activities. The remaining HK$81.3 million (33.69%) will be used for working capital replenishment and general corporate purposes to support the company's strategy.

The completion of these subscriptions is conditional upon approval from the Listing Committee of the Stock Exchange for listing and dealing in the subscription shares, and other conditions specified in the agreements. The new shares will be allotted under a general mandate granted to the directors on May 20, 2025, and will rank pari passu with existing fully paid shares.