According to the Zhitong Finance App, Qiansheng Group Holdings (08475) announced that the board of directors intends to submit a share merger proposal to shareholders, which involves merging the issued and unissued existing shares with a face value of HK$0.01 per 10 shares into a consolidated share with a face value of HK$0.1 per share.

Currently, shares are traded on the Stock Exchange in units of 5,000 shares per lot. After the share merger takes effect, the trading unit for each lot of the merged share will still be 5,000 consolidated shares.

The company proposes that after (including) the share merger takes effect, a maximum of about HK$50.2 million can be raised (assuming no new shares have been issued or repurchased on or before the record date) by issuing up to 88 million shares for each offering share at the subscription price of HK$0.57 per share of the offering (assuming that all of the offered shares are subscribed) on the basis that 2 shares are issued for each consolidated share held on the record date (assuming no new shares are issued or repurchased on or before the record date).

The net proceeds from the stock offering are estimated to be no more than HK$48.1 million. The company intends to use the net proceeds from the stock offering in the following order of priority: to repay loans due and payable over the next 12 months (including principal and related interest) and lease liabilities and lease-related expenses; to be used as the Group's working capital for the next 12 months; and to settle part of the costs and fund transaction costs associated with the potential acquisition.