Xinda Holdings (08471) plans to increase the authorized share capital and issue shares according to the “1 to 3” basis

According to the Zhitong Finance App, Xinda Holdings (08471) issued an announcement. The company proposed to increase the company's authorized share capital and provide shares according to the benchmark of 3 shares issued for every 1 share held on the record date.

The company proposes to increase the authorized share capital of the company from HK$20 million (divided into 100 million shares with a face value of HK$0.2 per share) to HK$200 million (divided into 1 billion shares with a face value of HK$0.2 per share) by adding an additional 900 million unissued shares with a face value of HK$0.2 per share. After shareholders pass an ordinary resolution at the special shareholders' meeting, the increase in authorized share capital will take effect on the date of the special shareholders' meeting.

After the increase in authorized share capital comes into effect, the company proposes to raise up to about HK$44.1 million in total proceeds by issuing up to 220.7 million shares for each share held at a subscription price of HK$0.2 per share of the offered share on the record date (assuming there is no change in the number of shares issued on or before the record date). The maximum net proceeds from the stock offering are estimated to be around HK$43.1 million.