Hydrogen energy equipment manufacturer Jiangsu Guofu Hydrogen Energy Technology Equipment Co. Ltd. (2582.HK), said on Wednesday that it will place about 2 million new shares for HK$50.13 each, raising about HK$100 million ($12.8 million).
The placement price represents a 9.68% discount to Wednesday’s closing price of HK$55.50, and the new shares will account for about 1.8% of the company’s enlarged issued share capital.
Guofu plans to use 72% of the proceeds to support its operational expenses, including payroll, social insurance, and payments to suppliers; 20% will be used to repay existing credit facilities, while the remaining 8% will be allocated for investments in hydrogen projects within China and overseas.
Shares of Guofu Hydrogen opened down 0.1% at HK$55.45 on Thursday. The stock is down 65% from its 52-week high.
By Lau Chi Hang
To subscribe to Bamboo Works weekly free newsletter, click here
