IMPRO PRECISION (01286) plans to provide a discount of approximately 13.58% for its rights issue, raising a net amount of approximately HK$539 million with a "first old, then new" allocation.

IMPRO PRECISION (01286) announced that on May 27, 2026, the company, the seller, and the placing agents entered into a placing and subscription agreement, whereby: (i) the seller has agreed to sell, and the placing agents have individually (not jointly or severally) agreed, as agents of the seller, to use their best efforts to procure not less than six subscribers to subscribe for up to 60 million shares at the placing price; and (ii) the company has agreed to issue, and the seller has agreed to subscribe for up to 60 million subscription shares at the subscription price (equal to the number of placing shares sold by the seller in the placing). The placing shares consist of up to 60 million shares, representing approximately (i) 3.18% of the total shares issued as of the date of the announcement, and (ii) approximately 3.08% of the enlarged total shares issued following completion of the subscription (assuming no change in the total shares issued between the date of the announcement and completion of the subscription, excluding the company's issuance of subscription shares). The placing price is HK$9.10 per share, equivalent to approximately 13.58% discount to the closing market price of HK$10.53 per share on the last trading day on the Stock Exchange. The number of subscription shares is equivalent to approximately (i) 3.18% of the total shares issued as of the date of the announcement, and (ii) approximately 3.08% of the enlarged total shares issued following completion of the subscription (assuming no other change in the total shares issued between the date of the announcement and completion of the subscription, excluding the company's issuance of subscription shares). The total expected proceeds from the subscription are approximately HK$546 million. The net proceeds from the subscription are expected to be approximately HK$539 million (after deducting all expenses incurred by the company related to the placing and subscription, including but not limited to placing agents' commission (fixed and discretionary) if any, stamp duty, Stock Exchange trading fees, and securities regulatory transaction levies, as well as other expenses incurred by the company in relation to the placing and subscription). The net subscription price per share (after deducting these expenses) is expected to be approximately HK$8.98. The company intends to use the net proceeds from the subscription for: (i) capital expenditures for factories in Mexico and China to meet the growing demand, especially in the end-market related to artificial intelligence data centers; (ii) to expand future production capacity and technology categories, and to make forward-looking preparations for the long-term sustainable development in the aerospace sector; and (iii) to repay bank borrowings, general working capital, and for general corporate purposes. The specific use of funds will be adjusted by the board of directors and authorized persons based on the company's or the group's operational needs, as well as regulatory advice received from relevant regulatory authorities.