Shares of MOST KWAI CHUNG (HKEX: 01716) surged close to 30% during the morning session. At the time of writing, the stock was up 27.02% to HK$6.77, with a turnover of HK$12.6056 million.

The sharp rise follows the company's announcement of a proposed share placement. The plan involves issuing up to 54 million new shares at a price of HK$4.28 each. The net proceeds from the placement are expected to be approximately HK$229 million.

The company intends to allocate the funds raised to several strategic areas. Around 60% will be directed towards establishing and developing a new environmental protection and sustainability business. A further 20% is earmarked for expanding the product and service offerings within the group's existing media operations. The remaining proceeds will serve as general working capital for the group.

This development follows a significant change in the company's ownership structure. On March 12th, Ma Liyang, Chairman of ST Jinglan, acquired a 65% stake in MOST KWAI CHUNG through his controlled company, Xiaojun Legend Limited, for a total consideration of HK$122.2 million. The mandatory general offer triggered by this acquisition was duly completed as of April 23rd. Ma Liyang has highlighted that the strategic rationale behind this acquisition is to establish a dual-capital platform structure encompassing both the A-share market and overseas markets.