HK Stock Market Move | BWI International (02339) has surged more than 18% in midday trading. The company plans to issue rights shares and convertible bonds to raise over HK$700 million.

BWI INT'L (02339) opened significantly lower this morning, but then the stock price rose by over 18%. As of the time of publication, it had risen by 15.89%, to 1.24 Hong Kong dollars, with a trading volume of 1224.95 million Hong Kong dollars and a total market value of approximately 10.68 billion Hong Kong dollars. On the news front, BWI INT'L announced that the company will issue 4.308 billion shares to four subscribing parties including the controlling shareholder; issue convertible bonds to the controlling shareholder totaling approximately 409 million yuan; and the net proceeds from the issuance and issuance of shares and convertible bonds amount to 710.4 million yuan. Forty percent of the funds will be used to build new production lines and upgrade existing production lines at the company's production plant in Poland; 30% will be used as operating funds for the production plant in Poland; 25% will be used as operating funds for the technical centers in Poland, Italy, and France; and 5% will be used as operating funds for the company's headquarters in Hong Kong. The announcement stated that the company is raising funds due to the steady growth of the automotive market and the complexity of transitioning to pure electric vehicles, leading to diversification in demand for components for internal combustion engines, hybrid powertrains, and electric vehicles, sharp increases in operating costs and research and development investment, as well as pressure on operating funds and talent demand. It is reported that in recent years, BWI INT'L has continued to invest in research and development, being the first in the country to achieve full industry chain autonomy and control of magnetorheological shock absorbers, self-developed stack with all intellectual property rights.