Takayama Enterprise (00616) plans to sell up to 67 million shares at a discount of about 10.45%

According to the Zhitong Finance App, Takayama Enterprise (00616) issued an announcement. The placement agent has conditionally agreed to place up to 67 million shares to no less than six undertakers at an placement price of HK$0.30 per share according to best effort standards.

The maximum number of placed shares of 67 million is equivalent to approximately 4.03% of the Company's issued share capital at the date of this announcement; and assuming that all of the placed shares were placed in accordance with the placement matters, accounting for about 3.87% of the Company's issued share capital after being allocated and expanded by issuing placed shares (assuming that the issued share capital of the Company remained unchanged from the date of this announcement to completion). The total face value of the highest number of placed shares under the placement items will be HK$670,000.

The placement price for each share is HK$0.30, which is approximately 10.45% off the closing price of HK$0.335 per share on the Stock Exchange on December 16, 2025 (the date of the placement agreement); and the average closing price of HK$0.337 per share reported on the Stock Exchange on the five consecutive trading days immediately prior to the date of the placement agreement is approximately 10.98%.

On the premise of completion, it is anticipated that the maximum gross proceeds and the maximum net proceeds (after deducting placement commissions and other costs and expenses related to the placement) will be approximately HK$2010 million and HK$1989,000 respectively. Based on this calculation, the net issue price for each placed share would be approximately HK$0.297.

The net proceeds from the capital raising per share after completion will be approximately HK$0.297 per share. It is anticipated that the net proceeds from the placement will be used to cover additional construction costs arising from the construction project at 646, 648 and 648A Castle Peak Road, Kowloon (Fenghua Project). The total area of the site is approximately 9206 square feet. In view of the current market conditions, the development plan of the Fenghua project has been adjusted and will be converted into student dormitories.