ZHENGWEI GROUP (02147) plans to increase its registered capital and conduct a rights issue on the basis of "1 for 6".

ZHENGWEI GROUP (02147) announced that the board of directors recommends increasing the companys registered capital from USD 80 million (divided into 400 million shares with a par value of USD 0.2 per share) to USD 160 million (divided into 800 million shares with a par value of USD 0.2 per share) through the issuance of an additional 400 million unissued shares with a par value of USD 0.2 each. The proposed increase in registered capital must be approved by ordinary resolution at a special general meeting of shareholders before it can be implemented. The board of directors proposes a rights issue at a subscription price of HKD 0.4 per share, with each shareholder receiving 6 rights shares for every 1 share they hold on the record date. Assuming no changes in the total number of issued shares from the date of this announcement to the record date (inclusive), the company will issue up to 403.2 million rights shares and raise up to approximately HKD 161 million (before expenses). The estimated net proceeds from the rights issue will be approximately HKD 160.4 million. The company intends to use 100% of the net proceeds from the rights issue to repay the groups bank borrowings.