BRIEF: Shanghai XNG raises $1 million in discounted share placement

Shanghai-based restaurant operator Shanghai XNG Holdings Ltd. (3666.HK) on Monday announced a placement of nearly 443 million shares for HK$0.02 per share, representing  a 16.7% discount to its last closing price of HK$0.024. The company raised HK$8.9 million ($1.14 million) from the placement, which it will use for general working capital.

The company said the placement would provide it with additional operating funds, bolster its financial position, and broaden its shareholder base to enhance the liquidity of its stock.

Shanghai XNG was once a restaurant powerhouse, but has seen its operations decline in recent years. Its revenue last year plunged 30% year-over-year to 314 million yuan, while its loss widened 80% to 85.06 million yuan.

Shares of Shanghai XNG opened up 25% on Tuesday and were up 12.5% at HK$0.027 in the afternoon. The shares are down 33% from their 52-week high.

By Lau Chi Hang

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