HK Stock Market Move | XTALPI-P(02228) rose more than 4% against the market, planning to issue up to 342 million shares of allotted shares, raising a net amount of 20.8 billion Hong Kong dollars.

XTALPI-P (02228) rose more than 4% against the market. As of the time of writing, it has risen by 3.55% to 6.71 Hong Kong dollars with a trading volume of 276 million Hong Kong dollars. On the news front, XTALPI-P issued an announcement that on February 19, 2025, the company entered into a placement agreement with the placement agent. The company agreed to issue up to a maximum of 3.42 billion shares at a placement price of 6.10 Hong Kong dollars per share, under the general mandate. The placement agent agreed to act as the company's agent and use its best efforts to encourage subscribers to subscribe for the shares at the placement price, subject to the terms and conditions of the placement agreement. The number of placement shares is equivalent to approximately 9.31% of the company's existing issued share capital as of the date of this announcement, and approximately 8.52% of the company's enlarged issued share capital after completion (assuming all placement shares are fully subscribed and there is no change in the company's issued share capital from the date of this announcement to the completion date). The placement price of 6.10 Hong Kong dollars per share represents a discount of approximately 5.86% to the closing market price of 6.48 Hong Kong dollars per share on the Hong Kong Stock Exchange on February 18, 2025 (i.e., the date of the fixed placement price). Assuming all 3.42 billion placement shares are fully subscribed, the total proceeds raised from the placement after completion is estimated to be approximately 20.88 billion Hong Kong dollars, with an estimated net proceeds of approximately 20.8 billion Hong Kong dollars. In a previous placement, the company raised a net amount of approximately 11.25 billion Hong Kong dollars, which was used for product iteration and upgrading, enhancing research and development capabilities and solutions; promoting the company's commercial development, strengthening external partnerships, expanding the company's scale and market share; potential investment opportunities, talent attraction and recruitment, working capital replenishment and general corporate purposes.