HK Stock Market Move | SEAZEN (01030) opened nearly 7% lower, planning to raise nearly HK$470 million in net proceeds through a rights issue with existing shareholders given priority.

SEAZEN (01030) opened nearly 7% lower, as of the time of reporting, it fell 6.76% to 2.62 Hong Kong dollars, with a turnover of 475 million Hong Kong dollars. On the news front, SEAZEN announced that it will issue 198 million shares to at least six buyers at a price of 2.39 Hong Kong dollars per share, representing approximately 2.73% of the enlarged share capital. The issue price represents a discount of 14.95% compared to the closing price of 2.81 Hong Kong dollars on February 4. The total capital raised and net proceeds are approximately 473 million Hong Kong dollars and 468 million Hong Kong dollars respectively, to be used for the company's future development, repayment of maturing debts, and general operating funds. After the completion of the issuance and subscription, the holding ratio of the controlling shareholder, Fuyu Hong Kong Investment, will be slightly diluted from 64.78% to 63.01%. The board of directors stated that the issuance and subscription will help expand the shareholder and capital base, enhance financial flexibility, and align with the overall interests of the company and shareholders.