IRC proposes rights issue to raise HK$325.9m

IRC Limited is proposing a non-fully underwritten rights issue to raise up to HK$325.9 million before expenses. Shareholders will be offered one rights share for every two existing shares at a subscription price of HK$0.51 per share. The net proceeds, estimated at HK$323.6 million, are intended to primarily repay $28.1 million in borrowings due to MIC, fund K&S mining operations ($9.2 million), and replenish general working capital ($4.2 million).

The rights issue follows a previous capital raise in 2024 and comes as IRC faces declining iron ore prices and currency appreciation pressures, impacting its profitability. The proposed subscription price represents discounts of 16.39% to the last closing price and 12.17% to the theoretical ex-rights price, while showing a 2.00% premium to the closing price on the Latest Practicable Date.

Axioma Capital, a controlling shareholder, has provided an irrevocable undertaking to subscribe for its full provisional entitlement of 415,050,642 rights shares and underwrite additional rights shares up to 75% of the enlarged issued share capital upon completion. The extraordinary general meeting to approve the rights issue and related transactions is scheduled for December 16, 2025.