South Manganese (01091) has unveiled plans to raise approximately HK$303.5 million in net proceeds through a share placement, marking a strategic move to bolster its financial position.

According to an announcement made on August 18, 2026, the company intends to place up to 987 million new shares. This figure represents 20% of the company's total issued share capital as of the announcement date and roughly 16.67% of the enlarged issued share capital following the allotment and issuance of the placement shares.

The placement price has been set at HK$0.314 per share, which reflects a discount of about 18.44% compared to the closing price of HK$0.385 per share recorded on August 18. Assuming all placement shares are fully subscribed, the total gross proceeds from the placement are expected to reach approximately HK$310 million.

After deducting related expenses, the company anticipates net proceeds of around HK$303.5 million. The company has outlined a clear allocation strategy for the funds raised. Approximately 95% of the net proceeds will be directed toward repaying the group's outstanding bank and other borrowings, along with associated interest obligations. The remaining 5% is earmarked to serve as general working capital for the group's operations.