SFQ GLOBAL (01953) completes placement of a total of 215 million placement shares, raising net proceeds of approximately HK$208 million

SFQ GLOBAL (01953) announces that all conditions of the placing agreement have been fulfilled and completion took place on October 29, 2026. The placing agent has successfully placed a total of 215 million placing shares at the placing price of HK$0.973 per placing share to not fewer than six placees in accordance with the terms and conditions of the placing agreement, representing approximately 14.58% of the Company's issued share capital as enlarged by the allotment and issue of the placing shares immediately after completion. To the best of the Directors' knowledge, information and belief after making all reasonable enquiries, and as informed by the placing agent, (i) the placees and their respective ultimate beneficial owners (if any) are all independent third parties; and (ii) no placee has become a substantial shareholder of the Company upon completion. The net proceeds from the placing (after deducting placing commission and other related expenses and professional fees) are approximately HK$208 million. The Company intends to allocate and apply the net proceeds from the placing as follows: (i) Approximately 93.6% of the net proceeds, or approximately HK$195 million, will be used for project working capital for the construction contracting of new energy power stations. It is expected that approximately 59.0% of the HK$195 million, or approximately HK$115 million, will be used for projects related to the CECEP Solar Energy photovoltaic and energy storage contracts as described in the Company's announcement dated October 21, 2026; and approximately 41.0% of the HK$195 million, or approximately HK$80 million, will be used for other projects in Southeast Asia and Africa that the Group expects to enter into in the first half of 2027. The proceeds will be used principally for the following purposes, including but not limited to: procurement of equipment and materials, subcontracting costs, on-site project management personnel costs, wages and accommodation costs of technical construction personnel, deposits and/or guarantees for various projects (if required), and related maintenance services for awarded projects and reserve projects. The proceeds are expected to be fully utilized by the end of June 2027. (ii) Approximately 2.4% of the net proceeds, or approximately HK$5 million, will be used for business expansion in Southeast Asia and Africa. The proceeds will be used for establishing subsidiaries, leasing offices, purchasing vehicles and equipment, hiring local personnel, professional fees incurred for engaging local legal, financial and tax experts, and other marketing and business development costs, in order to expand the Company's business footprint to other Southeast Asian and African countries. Such proceeds are expected to be fully utilized by the end of 2027. (iii) Approximately 4.0% of the net proceeds, or approximately HK$8.3 million, will be used for general working capital. The proceeds will be used to supplement the Group's daily working capital to meet the liquidity needs of its operations, including administrative, financial and legal expenses, and to reserve a funding buffer for the Group's business development, thereby safeguarding the stable operation of the Group's overall business. Such proceeds are expected to be fully utilized by the end of 2027.