Sterling Group Holdings Limited has signed a placing agreement with KGI Asia Limited to issue up to 8.29 million new shares under its existing general mandate, the company disclosed after Hong Kong trading hours on 4 September 2026.

The new shares represent 20% of Sterling Group’s current issued share capital and approximately 16.7% of the enlarged share base. Priced at HK$6.80 per share, the placement reflects a 19.53% discount to the same-day closing price of HK$8.45 and a 19.30% discount to the five-day average closing price of HK$8.426.

If fully subscribed, the transaction will raise gross proceeds of about HK$56.40 million. After deducting the 0.85% placing commission and related expenses, net proceeds are estimated at HK$55.90 million, translating to a net issue price of roughly HK$6.74 per share.

Management plans to allocate HK$33.54 million of the net proceeds to expand the Group’s core apparel manufacturing and trading operations, with the remaining HK$22.36 million earmarked for general working-capital needs.

Post-placement, public shareholders introduced through the deal will hold 16.7% of the enlarged share capital, while existing public investors’ stake will dilute from 100% to 83.3%.

Completion is contingent on Hong Kong Stock Exchange listing approval and other customary conditions; the placing may be terminated under various market or company-specific adverse events as outlined in the agreement.

The shares will be issued pursuant to the general mandate approved on 1 September 2026, allowing the Board to allot up to 20% of existing issued capital without further shareholder approval.

Sterling Group’s most recent equity fundraising occurred in January 2026, when it raised approximately HK$6.77 million via a general mandate placement for working-capital purposes.