ADD NEW ENERGY (02623) announced a proposal to conduct a rights issue on the basis of 1 rights share for every 2 existing shares held by eligible shareholders as of the record date.

The rights issue will be carried out at a subscription price of HK$2.88 per share, involving the issuance of up to 175 million new shares (assuming no change in the number of issued shares on or before the record date).

This is expected to raise gross proceeds of approximately HK$504.4 million, assuming full subscription and no change in the number of issued shares.

After deducting related expenses, the net proceeds from the rights issue are estimated to be approximately HK$503.4 million, assuming full subscription.

The company intends to use the net proceeds to identify suitable acquisition and/or investment opportunities, as well as to supplement the group's working capital.