HK Stock Market Move | WK GROUP (02535) rose more than 8%, planning to acquire 4.8 billion company shares from the controlling shareholder.

WK GROUP (02535) rose by more than 8%, rising 8.33% to HK $0.65 as of the time of publication, with a trading volume of HK $60,340,300. In terms of news, WK GROUP announced that the Chairman of the Board of Directors, non-executive director, and controlling shareholder (as defined in the Listing Rules) Chen Yongkang informed that WK (BVI) Limited (the seller, a company owned by Chen Xinji, Chen Xinjiang, Chen Yongkang, Cai Zhichang, and Chen Shuwen with 30%, 30%, 15%, 15%, and 10% equity respectively) has entered into a placement agreement with Huafu Jianye Securities Limited (placement agent) on November 13, 2024 (after trading hours). According to this agreement, the placement agent has agreed to use their best efforts to induce investors (subscribers) to purchase up to 480 million shares of the company's existing shares held by the seller at a price not lower than HK $0.25 per share. The placement period begins on the date of the placement agreement and ends at 4:00 pm on November 30, 2024, and no later than June 30, 2025, or any other date agreed upon in writing by the seller and the placement agent. As of the date of this announcement, the 480 million placement shares represent 24% of the company's existing issued share capital. After the placement is completed and assuming that all placement shares are sold to subscribers, the seller's shareholding will be reduced to 1.02 billion shares, representing 51% of the company's total issued share capital. Therefore, the seller will continue to be the controlling shareholder of the company.