CHK Oil (00632) is planning to offer a discount of approximately 17.6% for the placement of no more than 86.87 million shares, with a net amount of approximately 17.32 million Hong Kong dollars.

CHK Oil (00632) announces that following the first round of placement, on June 23, 2026 (after trading hours), the company entered into a placement agreement with the placement agent. According to this agreement, the placement agent conditionally agrees to act as the company's agent to use best efforts to solicit no less than six placing agents (and their ultimate beneficial owners must be independent third parties) to subscribe for up to 86.87 million shares of placement shares at a price of HK$0.21 per share. The placement shares will be distributed and issued based on the general mandate granted to the directors at the company's annual general meeting held on June 27, 2025. The placement shares represent approximately 9.08% of the existing issued shares as of the date of this announcement; and approximately 8.33% of the enlarged issued shares after the issuance of the placement shares. The placement price of HK$0.21 per share represents a discount of approximately 17.6% to the closing price of HK$0.255 per share reported on the Hong Kong Stock Exchange on the date of the placement agreement. Assuming all placement shares are fully subscribed, the expected gross proceeds from the placement will be approximately HK$182.4 million, with expected net proceeds of approximately HK$173.2 million, equivalent to a net price of approximately HK$0.199 per share. The group intends to allocate approximately 55.4% to repay part of the outstanding principal amount owed to Bank of China; approximately 37.5% for seeking suitable investment projects and/or acquisition opportunities overseas that are evaluated by the board from time to time as having synergistic effects with the group's main business; and approximately 7.1% for the group's other business operations and general working capital.