YOFC proposes H share placement to boost finances

Yangtze Optical Fibre and Cable Joint Stock (YOFC) has announced a proposed placement of 70,000,000 new H shares under a general mandate. The board approved the issuance, which will represent about 19.91% of existing H shares and 9.24% of total share capital post-issuance. The issue price is HK$32.26 per H share, a discount of 9.79% to the average closing price over the last five trading days and 14.93% to the closing price on December 9, 2025.

The transaction is expected to raise approximately HK$2,258.20 million in gross proceeds, with net proceeds of about HK$2,229.46 million. These funds are designated for expanding the company's overseas business and general working capital, with full utilization projected by December 2026. The new H shares will rank equally with existing H shares regarding dividends and other rights upon completion.

The placement is subject to several conditions, including approval from the Hong Kong Stock Exchange for listing and trading, and relevant regulatory approvals from Chinese authorities.