HK Stock Market Move | MOG DIGITECH (01942) fell by more than 20% in early trading, suggesting a 2-for-1 rights issue at a discount of about 54.5% to raise HK$44.6 million.

MOG DIGITECH (01942) fell more than 20% in early trading, with a decrease of 18.88% as of the time of reporting, trading at HK$0.116, with a trading volume of HK$2.4793 million. In terms of news, MOG DIGITECH announced that it is proposing to increase its authorized share capital from HK$20 million to HK$200 million. It is also proposing a rights issue of 2 shares for every 1 share held to raise up to HK$44.6 million, with a rights issue price of HK$0.065 per share, representing a discount of approximately 54.5% from yesterday's closing price of HK$0.143. The total proceeds from the rights issue are expected to be approximately HK$44.6 million, with a net amount of approximately HK$43.2 million. The board of directors intends to allocate the net proceeds as follows: approximately 50% will be used to inject capital into the group's existing financing service business, and approximately 50% will be allocated for general operating expenses, including employee-related costs and rental costs.