IMAGI INT'L (ASX: 00585) shares have surged again, gaining nearly 20% in today's session. This continues a remarkable rally that has seen the stock appreciate by over 300% since the beginning of April.
At the time of writing, the stock was up 21.18% to HK$3.89, with a trading volume of HK$141 million.
The catalyst for this sustained upward move stems from a significant change in shareholding announced by the company in April. Weida Holdings transferred its entire holding of 141 million shares to an independent party, Mr. Han Xuyang. Following this transaction, Mr. Han has become the company's principal and single largest shareholder, holding a 17.10% stake. He has also been appointed as the Chairman and an Executive Director of the company. Public records indicate Mr. Han is the CEO of Zhongyu Group, a company that completed a privatization and delisting process at the end of 2023.
In a related development, Summi (Group) Holdings announced last month its subscription for 2,102 shares in IMAGI INT'L's subsidiary, IFGL, for a total consideration of HK$167 million. Upon completion, Summi's stake in IFGL, which is primarily engaged in providing integrated financial services, will increase from 19.74% to 30.70%. Concurrently, IFGL's shareholding in Summi will rise from 16.67% to 28%. As a result, IMAGI INT'L's stake in IFGL will be diluted from 79.21% to 68.39%.