AI Energy Engineering Launches HK$75.70 Million Non-Underwritten Rights Issue at 7.8% Discount

Bulletin Express
09/17

AI Energy Engineering Holdings Ltd. (AI Energy) has announced a non-underwritten rights issue aimed at raising up to HK$75.70 million to strengthen liquidity for newly secured engineering projects in mainland China.

Key Terms • Entitlement: Two Rights Shares for every five existing shares held on the 2 September 2026 record date. • Issue Size: Up to 116.48 million Rights Shares, equal to 40% of the current share capital; post-issue share count could reach 407.67 million. • Subscription Price: HK$0.65 per Rights Share, representing 7.80% below the HK$0.705 closing price on the last trading day (17 August 2026) and 6.95% below the theoretical ex-rights price of HK$0.6986. • Timetable: Trading in nil-paid Rights Shares runs 21–28 September 2026; final acceptance and payment deadline is 2 October 2026. • Non-Underwritten: No minimum subscription. Unsubscribed or non-qualifying portions will be placed by Astrum Capital on a best-efforts basis between 9–14 October 2026. Any premium (Net Gain) above the subscription price, after expenses, will be returned pro rata to unparticipating shareholders.

Financial Impact • Maximum net proceeds are estimated at HK$72.40 million after expenses of about HK$3.27 million. • Net tangible assets per share would rise from HK$0.25 to HK$0.36 assuming full subscription. • Shareholders not exercising rights face dilution of up to 28.57%.

Use of Proceeds • HK$48.00 million (66.3%) earmarked for performance bonds on two PRC wind-turbine M&E construction contracts (aggregate value: RMB800 million-plus). • HK$24.40 million (33.7%) allocated to upfront project costs, notably material procurement. Funds are expected to be fully deployed by 31 August 2027.

Strategic Context The Group is expanding from core concrete-demolition services in Hong Kong and Macau into PRC engineering via wholly owned Guangdong Fengxin. Newly secured contracts total RMB878.30 million, including industrial waste-gas power generation and wind-turbine M&E works.

Capital Structure and Shareholder Position Major shareholders—Applewood Developments (12.98%) and Chairman Cao Yifan (11.64%)—have not given irrevocable undertakings to take up rights. If fully taken, their percentages remain unchanged; if they decline, their stakes could fall to 9.27% and 8.32%, respectively. Public float compliance is to be maintained.

Historical Fundraising The company raised HK$70.76 million via a share placing in December 2025 and HK$0.40 million through a previous rights issue in March 2026.

Risk Considerations The offer is non-underwritten; if uptake is weak, the capital raised will be lower, potentially constraining project timelines. Shareholders trading the nil-paid rights before the issue becomes unconditional bear the risk of the transaction not proceeding.

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