HK Stock Market Move | Youran Dairy (09858) opened more than 5% lower, planning a discounted rights issue to raise net funds of HK$2.33 billion, increasing the shareholding of the major shareholder to over 36%.

YOURAN DAIRY (09858) opened lower by more than 5%, as of the time of writing, it increased by 5.12%, trading at 4.08 Hong Kong dollars, with a turnover of 11.81 billion Hong Kong dollars. In terms of news, YOURAN DAIRY announced that it intends to offer shares at a price of 3.92 Hong Kong dollars per share, at a discount of 8.84% compared to the closing price of 4.3 Hong Kong dollars on January 15th. The net proceeds of 2.33 billion Hong Kong dollars will be used for advanced technology empowerment and digital transformation to improve operational efficiency; repayment of interest-bearing debts and optimization of capital structure to provide flexibility for potential acquisition or investment opportunities; and supplementing operating funds for general corporate purposes. The company announced that it will first sell 2.9925 billion existing shares and then sell 2.9925 billion new shares, with the seller (Bright Dairy, a wholly-owned subsidiary of the controlling shareholder Yili) subscribing to the new shares. Upon completion, the controlling shareholder's stake in the company will increase from 33.93% to 36.07%.