HK Stock Market Move | MMG (01208) opened more than 5% lower, the company plans to issue new shares and convertible bonds, with a total net fundraising exceeding HK$12.6 billion.

MMG (01208) opened more than 5% lower and as of the time of writing, it had dropped by 5.54% to 9.2 Hong Kong dollars, with a trading volume of 151.248 million Hong Kong dollars. On the news front, MMG announced that it plans to offer nearly 706 million new shares with a net amount of about 6.253 billion Hong Kong dollars. At the same time, the company will also issue zero-coupon convertible bonds maturing in 2027, with an estimated net proceeds of about 813 million US dollars, equivalent to around 6.37 billion Hong Kong dollars. It is reported that the rights issue and issuance of convertible bonds are expected to raise approximately 12.623 billion Hong Kong dollars in total. MMG plans to use the funds for refinancing existing shareholder loans and external borrowings, supporting the development and expansion of existing projects, strategic acquisitions and investments, as well as for supplementing working capital and general corporate purposes.