ALCO HOLDINGS (00328.HK) announced that it has entered into a placing agreement with Wang Fung Securities (H.K.) yesterday (28th). Reportedly, ALCO HOLDINGS has conditionally agreed to place up to 19.09 million shares through Wang Fung Securities (H.K.) at a placing price of HKD 3.49 per share, with the placing participants and their beneficial owners being independent third parties.

ALCO HOLDINGS stated that the placing shares represent approximately 16.66% of the enlarged issued share capital of the company. The placing price of HKD 3.49 per share represents a discount of approximately 19.77% compared to the closing price of HKD 4.35 per share yesterday (28th).

ALCO HOLDINGS added that assuming all 19.09 million placing shares are fully allocated, the total gross proceeds and net proceeds are expected to be HKD 66.6 million and HKD 65.2 million, respectively. The company intends to use the net proceeds from the placing for repayment of banks and other borrowings, settlement of external debts, and general working capital of the group. (js/w)

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