Yangtze optical fibre & cable announces HK$2.2bn H share placing

Yangtze Optical Fibre and Cable Joint Stock Limited Company has entered into a placing agreement with China International Capital Corporation Hong Kong Securities Limited for the placing of 70,000,000 new H shares under its general mandate. The placing price is HK$32.26 per placing share, representing a 9.79% discount to the average closing price over the five trading days up to December 8, 2025, and a 14.93% discount to the closing price on December 9, 2025.

The aggregate gross proceeds from the placing are expected to be HK$2,258.20 million, with net proceeds estimated at approximately HK$2,229.46 million. The company plans to allocate 80% (HK$1,783.57 million) of the net proceeds towards developing its overseas business, and the remaining 20% (HK$445.89 million) for general working capital of the group, with full utilization anticipated by December 2026.

The placing shares, representing approximately 19.91% of existing H shares and 9.24% of total issued share capital, will rank pari passu with existing H shares. Completion is subject to various conditions, including listing approval from the stock exchange and necessary regulatory clearances. Shareholders and potential investors are advised to exercise caution.