Cig Shanghai (06166) plans to place shares at a discount of approximately 8% and issue RMB 3.96 billion in convertible bonds, raising over HKD 6.5 billion in net proceeds.

Cig Shanghai (06166) announced that the Company and the joint placing agents entered into a placing agreement on October 8, 2026 (before trading hours), pursuant to which the Company intends to place 18.446 million placing shares through the joint placing agents at HKD 105.16 per placing share, representing a discount of approximately 8.00% to the closing price of HKD 114.30 per H-share as quoted on the Hong Kong Stock Exchange on the last trading day, with net proceeds of approximately HKD 1.93 billion. On the same day, the Company entered into a subscription agreement with the managers, pursuant to which and subject to certain conditions contained therein, the Company has agreed to issue, and each manager has severally (and not jointly, nor jointly and severally) agreed to subscribe for and pay for, or to procure subscribers to subscribe for and pay for, bonds with an aggregate principal amount of RMB 3.96 billion. The bonds may be converted into H-shares at an initial conversion price of HKD 128.82 per H-share (subject to adjustment) under the circumstances set out in the terms and conditions, representing a premium of approximately 12.70% over the closing price of HKD 114.30 per H-share as quoted on the Hong Kong Stock Exchange on the last trading day. Upon completion of the bond issue, the gross proceeds from the bond subscription will be approximately HKD 4.635 billion, and after deducting the estimated expenses payable for the bond issue, the net proceeds from the bond subscription will be approximately HKD 4.606 billion. The Company will apply to the Vienna MTF operated by the Vienna Stock Exchange for approval to list the bonds, and will apply to the Hong Kong Stock Exchange for the H-shares to be issued upon conversion of the bonds. Taking into account the industry background and the Company's strategic planning, the Company intends to use approximately 55% of the total net proceeds from the placing and the bond issue to enhance the production capacity of optical module products, approximately 30% for strategic investments in selected upstream enterprises, and approximately 15% for general corporate purposes and to replenish the Group's working capital.