Zhitong Financial App News, Baode International Development (00372) issued an announcement that Qianyang, a non-wholly-owned subsidiary of the company, proposes to issue up to 8.229 billion Qianyang offer shares at the subscription price of HK $0.0062 per Qianyang offer share on the basis of 8 Qianyang offer shares for every existing Qianyang share held on the record date (assuming that there is no change in the number of Qianyang shares issued on or before the record date). The maximum amount of money raised is about HK $51 million. None of Qianyang shareholders has the right to subscribe for more than its quota of Qianyang offer shares.

Assuming that the Qianyang offer shares are subscribed, the net proceeds from the Qianyang offer after deducting expenses are estimated to be about HK $50.5 million.

Assuming that Qianyang shares are subscribed, Qianyang intends to use 30 million yuan of the net proceeds of Qianyang offer to repay 30 million yuan due under the settlement agreement on June 30, 2023, of which 12.3 million yuan is used for settlement, including expenses related to the reconstruction and expansion of automobile oil distribution facilities and oil and gas recovery equipment of Qianyang Group, of which HK $3.5 million is repaid to the company. And the balance is used for the general working capital of Qianyang Group.

In addition, the Group intends to accept and subscribe for the Prudential quota (i.e. 5.349 billion Qianyang shares).