Karrie International to issue convertible bonds to major shareholder

Karrie International Holdings Limited has announced a proposed issue of HK$150,000,000 in unlisted convertible bonds to its executive director and controlling shareholder, Ho Cheuk Fai. The three-year bonds carry a 2.0% coupon rate and an initial conversion price of HK$2.30 per share. This represents a 7.26% discount to the closing price on October 13, 2025, and a 15.57% discount to the five-day average closing price.

The gross proceeds, approximately HK$150,000,000, with net proceeds of HK$149,750,000, are intended to fund the group's production capacity expansion in Thailand, specifically for AI server chassis and rack components. The company aims to increase its metal and plastic business segment capacity by approximately 80% to meet rising demand.

The transaction is a connected transaction and requires approval from independent shareholders at a special general meeting scheduled for December 2, 2025. Upon full conversion, 65,217,391 new shares would be issued, diluting independent shareholders' holdings from 26.15% to approximately 25.33%.