Shandong Molong Petroleum Machinery (00568) proposes to place up to 33.6156 million shares at a discount of approximately 16.17%, aiming to raise a net proceeds of approximately HK$115 million.

Shandong Molong Petroleum Machinery (00568) announced that on September 24, 2026, the Company proposes to place up to 33,615,600 new H Shares. Assuming all the Placing Shares are fully placed, the Placing Shares represent approximately 11.93% of the existing issued H Shares and approximately 4.08% of the total number of issued Shares as at the date of this announcement. The placing price per Placing Share is HK$3.50, representing a discount of approximately 16.17% to the closing price of HK$4.175 per H Share on September 23. Assuming all the Placing Shares are fully placed, the total gross proceeds from the Placing are expected to be approximately HK$118 million, and the total net proceeds from the Placing are expected to be approximately HK$115 million. The Company intends to apply the net proceeds from the Placing as follows: (a) approximately 70% for repayment of borrowings; (b) approximately 20% for settlement of payables arising from daily business operations, including payments for the procurement of raw materials; and (c) approximately 10% for working capital and general corporate purposes.