Yongda Auto raises funds in Hongxin tie-up

Auto sales company China Yongda Automobiles Services Holdings Ltd. (3669.HK) announced Wednesday that it will sell 73.16 million new shares to Hongxin International Shipping for HK$0.825 each. The sale will raise HK$60.36 million ($7.73 million), which Yongda will use for efforts to deploy its embodied intelligence.

The subscription price represents a 19.9% discount to Yongda’s Wednesday price of HK$1.03 per share, but a 2.1% premium over the average price of HK$0.808 per share over the past five trading days. The placement shares will account for approximately 3.85% of Yongda’s enlarged share capital.

Yongda also entered into a strategic cooperation agreement with Hongxin Electronics, a unit of Hongxin International Shipping. Yongda plans to leverage Hongxin Electronics’ capabilities and resources to deploy its commercial application services for embodied intelligence.

Shares of Yonda opened down 10.7% at HK$0.92 on Thursday. The stock is down over 60% from its 52-week high.

By Lau Chi Hang

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