Pateo Connect raises $49 million in new share sale at 17.6% discount
Smart cockpit and connected vehicle solutions provider Pateo Connect Technology (Shanghai) Corp. (2889.HK) announced on Wednesday that it will sell 2.26 million new shares for HK$173.40 each, representing a 17.6% discount to the previous day’s closing price of HK$210.40. The sale is expected to raise net proceeds of HK$382 million ($49 million).
The new shares represent about 2.8% of the company’s existing share capital for its Hong Kong-listed H-shares, and will represent approximately 2.73% of its enlarged H-share capital. Pateo said around 80% of the proceeds will be used for potential strategic acquisitions and investments, including AI agents, chips and semiconductors, as well as other segments of the AI value chain. The remaining 20% will be used for working capital and general corporate purposes.
The transaction marks Pateo’s second equity fundraising this year. The company completed a private share subscription worth approximately HK$114 million last month, though it disclosed that none of those proceeds had been utilized as of the date of the latest placement announcement.
Pateo Connect’s shares opened lower on Wednesday and closed at HK$190 by the midday break, down 9.7%. The shares have loss about 4% over the past six months.
By Lee Shih Ta
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