Vobile Group (03738) plans to issue HKD 155.8 million zero-coupon convertible bonds due in 2028.

MOBILE GROUP (03738) announced on May 2, 2025 that the company has entered into a subscription agreement with investors, pursuant to which the company conditionally agrees to issue, and the investors conditionally agree to subscribe for, convertible bonds with a principal amount of 1.558 billion Hong Kong dollars (of which 1.17 billion Hong Kong dollars and 38.76 million Hong Kong dollars are attributable to subscribers Wind Sabre Opportunities Fund SP and Aces SP respectively). Assuming no further issuance or repurchase of shares, based on the initial conversion price of the convertible bonds and assuming the full conversion at the initial conversion price, the convertible bonds will be converted into 41 million shares, representing (a) approximately 1.79% of the issued share capital of the company as of the announcement date, and (b) approximately 1.76% of the enlarged issued share capital of the company from the issuance and allotment of 41 million conversion shares (assuming no change in the issued share capital from the announcement date until the completion of full conversion of the convertible bonds at the initial conversion price). The initial conversion price of the convertible bonds at 3.80 Hong Kong dollars represents a premium of approximately 14.5% compared to the closing price of the shares as reported on the Stock Exchange on the subscription agreement date on May 2, 2025. After deducting estimated expenses related to the issuance of the convertible bonds, the estimated net proceeds from the issuance of the convertible bonds is approximately 1.52 billion Hong Kong dollars, resulting in a net issuance price of 3.72 Hong Kong dollars per conversion share. The company plans to use 75% of the net proceeds from the issuance of the convertible bonds for investment purposes and 25% for general working capital purposes.