On November 19, it was reported that according to documents disclosed by the Hong Kong Stock Exchange on November 19, Baocheng Holdings Limited increased its shareholding on November 18 at an average price of HKD 0.439 per share.$ICONCULTURE (08500.HK)$45.53 million ordinary shares, valued at approximately HKD 19.9877 million. After this increase, the latest number of shares held by Baocheng Holdings Limited is 56.334 million shares, with the good stock ratio rising from 2.50% to 13.04%.
Why did the shareholder increase their holdings, but the shareholding ratio decreased?
This may be because the listed company issued new shares and increased capital, resulting in the dilution of the shareholder's shareholding ratio.
What is equity disclosure?
According to the requirements of the Hong Kong Stock Exchange, major shareholders (individuals and companies holding 5% or more of the company's shares) must disclose their shareholding in the listed company. Directors and senior executives of the listed company must disclose their shareholding and equity certificate rights in the listed company and any related companies.
Why is equity disclosure important?
Equity disclosure enables investors to identify (1) individuals who control or have the ability to control the shareholding of the listed company and (2) individuals who may benefit from transactions involving entities related to the listed company.