CAPITAL IND FIN (00730) plans to implement a "50 for 1" share consolidation and a "1 for 1" rights issue.

CAPITAL IND FIN (00730) announced that the board of directors recommends the consolidation of existing shares on the basis of one consolidated share for every 50 shares already issued. The share consolidation must be approved by shareholders at a special meeting through a voting process before it can be implemented. As of the date of this announcement, there are 3,953,938,703 existing shares that have been distributed and issued. After the share consolidation takes effect, and assuming that the number of shares issued has not changed from the date of this announcement to the effective date of the share consolidation, the total number of consolidated shares issued will be 79,078,773 shares. The company proposes to issue a maximum of 79,078,773 rights shares at a subscription price of HK$6.25 per share on the basis of holding 1 consolidated share for every 1 rights share held on the record date, raising a total amount of approximately HK$494.2 million (assuming full subscription of the rights shares). The net proceeds from the rights issue (excluding all related expenses) are estimated to be approximately HK$488.2 million (assuming full subscription of the rights shares; and assuming no change in the number of shares issued before the record date and no issuance of new consolidated shares (excluding rights shares) before or at the completion of the rights issue). After deducting the expenses related to the rights issue, the net price per rights share is estimated to be around HK$6.17. The company intends to use approximately 50% of the net proceeds from the rights issue for potential acquisitions of companies or businesses similar and/or complementary to the group's existing core business when opportunities arise; around 35% for the development and expansion of the group's core business, including enhancing product and service capabilities, expanding customer solutions, and improving overall business capabilities; and around 15% to supplement the group's general operating funds.