BAY AREA DEV (SEHK: 00737) has entered into a subscription agreement with Shandong Hi-Speed (Hong Kong) Investment Co., Ltd. on June 12, 2024. The company plans to issue 250 million new shares at a subscription price of HK$1.8335 per share.

The subscription price represents a discount of approximately 5.00% compared to the closing price of HK$1.93 per share on the last trading day on The Stock Exchange of Hong Kong Limited.

The net proceeds from the subscription are estimated to be around HK$456 million. The company intends to allocate approximately 60% of the net proceeds as capital investment for the expansion and upgrade project of the Guangzhou-Shenzhen section of the Beijing-Hong Kong-Macao Expressway.

About 40% of the net proceeds are earmarked for potential land development and utilization along the Guangzhou-Shenzhen section of the expressway, other business expansion initiatives, and supplementing the group's general working capital.