SHOUGANG RES (00639) plans to issue new shares at a ratio of 30 shares for every 1 existing share, with a net fundraising amount not exceeding approximately HK$4.254 billion.

SHOUGANG RES (00639) announced that the company intends to raise funds through a rights issue with a total amount of up to approximately HKD 427 million (before expenses). The stock will be issued at a subscription price of HKD 2.60 per share, with a maximum of 164 million shares to be issued (assuming no change in the number of shares issued as of the record date and all rights shares will be subscribed). The rights issue will be offered only to eligible shareholders, and will not be offered to ineligible shareholders (if any). The purpose of the rights issue is to increase the liquidity of the shares and promote trading, thereby realizing the inherent value of the group; to provide the company with general working capital and improve the liquidity of the group's financial position; and to provide additional capital reserves to prepare for future investment opportunities. The net proceeds of the rights issue are estimated not to exceed approximately HKD 425.4 million. The company intends to use the net proceeds for general working capital and/or additional capital reserves to seize business opportunities in the Chinese coking coal mining industry, strengthen its financial position, and prepare for future investment opportunities.