BRIEF: Ubtech raises $113 million in fourth post-IPO share placement

Shenzhen-based robotics manufacturer Ubtech Robotics Corp. Ltd. (9880.HK) announced on Thursday it plans to raise HK$876 million ($113 million) through the placement of over 10.1 million new shares, representing approximately 2.3% of its enlarged share capital. It set the placement price at HK$90 per share, reflecting a discount of over 8.5% compared to Wednesday’s closing price.

The funds will be used for business operations and development, including for working capital, domestic and overseas investments, project construction, and renovations. Part of the proceeds will also be used to repay maturing loans under its existing credit facilities.

The sale marks Ubtech’s fourth equity placement in just over a year since its IPO in late 2023, bringing its total fundraising to over HK$1.9 billion. In the first half of 2024, Ubtech recorded a net loss of HK$516 million, with cumulative losses over the past four and a half years reaching HK$4.35 billion — exceeding its total revenue during the same period.

Ubtech’s stock fell as much as 5.5% in early trading on Thursday but closing flat at HK$98.4 by midday break.

By Lee Shih Ta

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