IRC proposes rights issue to bolster finances with HK$325.9m raise

IRC Limited plans a rights issue offering one rights share for every two existing shares at HK$0.51 per share, before expenses, to raise approximately HK$325.9 million. The net proceeds, estimated at HK$323.6 million, will primarily repay borrowings due to MIC, fund the K&S mining operation, and replenish general working capital. The company faces declining iron ore prices and currency appreciation pressure impacting operating margins.

The rights issue, on a non-fully underwritten basis, will involve Axioma Capital, a controlling shareholder, underwriting a portion of the shares and subscribing to its full provisional entitlement of 415,050,642 rights shares. This transaction is considered connected and is subject to approval by independent shareholders at an EGM where Axioma Capital will abstain from voting.

The subscription price represents discounts of approximately 16.39% to the last trading day's closing price and 61.1% to the latest unaudited consolidated net asset value per share. The company will dispatch a circular by November 25, 2025, with the record date for entitlements set for December 30, 2025.