BRIEF: Dmall raises $50 million in share placement at 10% discount

Retail digital services provider Dmall Inc. (2586.HK) said on Wednesday it placed 35.4 million shares at a price of HK$11.10 per share, equal to about 3.93% of its currently issued shares. The placement price represented a 10% discount to its closing price of HK$12.34 per share on Wednesday, raising proceeds of nearly HK$393 million ($50 million).

Dmall said the placement will further enlarge the company’s shareholder base, improve its capital structure and support its healthy and sustainable development. Proceeds will be used for the company’s R&D investment in stablecoins and blockchain, technology advancement and for general corporate purposes. 

Dmall raised HK$630 million in its IPO last year. It sold shares for HK$30.21, only to see the stock lose more than half its value on its first trading day. Earlier this month the company said it would apply for a stablecoin license in Hong Kong and open a trading account at HashKey Exchange to conduct work in digital assets.

Shares of Dmall opened up 10% at HK$13.58 on Thursday, but quickly reversed course and were down 2% in early trade. The stock is down around 60% from its listing price.

By Lau Chi Hang

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