Zhongjin Lingnan plans private placement of A shares for strategic growth

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. plans a non-public offering of A shares in 2025 to specific investors, with its controlling shareholder, Guangdong Guangcheng Holding Group Co., Ltd., as the sole subscriber. The offering aims to raise up to yuan 1.5 bn for working capital and debt repayment. The issuance price has been adjusted from yuan 3.74 per share to yuan 3.66 per share following a 2024 cash dividend. Guangdong Guangcheng Holding Group has committed to a 36-month lock-up period for the newly acquired shares.

The company's board and shareholders approved the offering, which still requires approval from the Shenzhen Stock Exchange and the China Securities Regulatory Commission. This private placement will increase Guangdong Guangcheng Holding Group's stake, reinforcing control and demonstrating confidence in the company's future. The funds will enhance Zhongjin Lingnan’s financial health, reduce leverage, and support its strategic development in the non-ferrous metals industry.

Guangdong Guangcheng Holding Group has affirmed that it has not reduced its holdings in Zhongjin Lingnan shares six months prior to the pricing base date and commits to no reductions for six months post-issuance. The group also pledged that any profits from non-compliant reductions would be remitted to the company. The private placement is crucial for the company to optimize its capital structure and maintain stable operations amid an evolving market.