HK Stock Market Move | China Hanking (03788) once fell more than 7%, offering a discount of over 18% for a rights issue, with a net fundraising of HK$770 million.

At the opening, CHINA HANKING (03788) fell more than 7%, as of the time of publication, it fell by 4.3% to 4.45 Hong Kong dollars, with a trading volume of 53.05 million Hong Kong dollars. In terms of news, CHINA HANKING announced that it has signed a placement agreement with four subscribers, including Zijin Global Fund, Lu Yin, Eastern Gold Industry, and Manna Lake, to issue 43.96 million shares at a price of 3.8 Hong Kong dollars per share, accounting for approximately 1.96% of the enlarged share capital. The subscription price of 3.8 Hong Kong dollars per share represents a discount of approximately 18.28% from the closing price of 4.65 Hong Kong dollars on January 21st. The net proceeds from this placement are approximately 165 million Hong Kong dollars. In addition, the company also plans to issue approximately 162 million new shares to not less than six underwriters at a price of 3.8 Hong Kong dollars per share, accounting for approximately 7.23% of the enlarged share capital. It is expected that the proceeds from this portion of the placement will be approximately 607 million Hong Kong dollars. The company said that the net proceeds mentioned above, together with its own funds, will be used in full to support the development of the Mt. Bundy gold mine project in Australia, with completion expected by the end of 2027. In order to accelerate the project, mining construction EPC contractors will be invited for bidding and work on the construction of the camp (including employee dormitories and cafeterias) will be carried out in the coming months. After the completion of construction drawings and the implementation of debt financing, it is expected to start construction of the plant in the second half of 2026, with the goal of achieving production in the first quarter of 2028.