Citychamp Watch & Jewellery Group Limited (CITYCHAMP) reported that its HK$-denominated rights issue has been under-subscribed, with shareholders applying for only 58.0% of the offer.

As of the 25 June 2026 record date, CITYCHAMP had 4.35 billion issued shares. The company offered 1.45 billion new shares (the “Rights Shares”) to existing shareholders on the basis set out in its prospectus. By the 10 July 2026 deadline, just seven valid applications covering 840.66 million Rights Shares were received. The shortfall of 609.97 million shares—about 42.0% of the offer—now falls under compensatory arrangements.

Under these arrangements, the appointed placing agent will attempt, on a best-efforts basis, to place the 609.97 million Unsubscribed Rights Shares and NQS Unsold Rights Shares to independent investors by 4:00 p.m. on 21 July 2026. Any net proceeds (“Net Gain”) from this placing will be distributed pro rata (rounded down to the nearest cent) to shareholders who did not take up their entitlements and to non-qualifying shareholders, provided the individual amount exceeds HK$100. Amounts of HK$100 or less will be retained by the company.

The rights issue is not underwritten and carries no minimum subscription requirement. Should any portion of the Unsubscribed Rights Shares remain unplaced, those shares will simply not be issued, reducing the final size of the capital raise.

CITYCHAMP plans to publish the final results of the rights issue and the placing on 28 July 2026. Shareholders and potential investors are reminded that the transaction’s completion is contingent on satisfaction of its conditions; trading in the company’s shares before these conditions are met involves inherent risk.