On October 28, 2024, ALCO HOLDINGS (00328.HK) announced that the company had entered into a placement agreement with the placing agent, whereby the company conditionally agreed to place up to a maximum of 19,090,000 shares at a placing price of HK$3.49 per share to placees at best efforts basis, and the placing agent and its ultimate beneficial owners must be independent third parties.

The maximum number of shares offered for placement, 19,090,000 shares, is equivalent to approximately 16.66% of the enlarged issued share capital of the company after the issuance and placement of the shares. The placing price of HK$3.49 represents a discount of approximately 19.77% to the market price of HK$4.35 per share as reported on the Stock Exchange on the date of the placement agreement; the total proceeds and net proceeds (after deducting placement commissions and other related expenses) are estimated to be approximately HK$66.6 million and HK$65.2 million respectively. The company intends to use the net proceeds from the placement for repayment of banks and other borrowings, settlement of external debts, and general working capital of the group.