Crocodile Garments Limited (Stock Code: 122) unveiled a plan to raise up to approximately HK$53.3 million through a 1-for-2 rights issue at HK$1.50 per Rights Share. According to the announcement dated 22 October 2025, the initiative will proceed on a non-underwritten basis, offering Qualifying Shareholders one new Rights Share for every two existing Shares. Net proceeds are expected to be around HK$51.6 million after expenses, translating to roughly HK$1.45 per Rights Share.

Key terms of the proposal state that up to 35,532,888 Rights Shares may be issued, representing 50% of Crocodile Garments Limited’s existing share capital (71,065,777 Shares). If fully subscribed, the enlarged share capital will total 106,598,665 Shares. The subscription price carries a discount of about 22.68% to the HK$1.94 closing price on the last trading day and about 16.34% to the theoretical ex-rights price of approximately HK$1.793.

The closing date of the register of members for determining entitlements is set from 14 November 2025 to 20 November 2025, with the Record Date on 20 November 2025. The Rights Shares—both nil-paid and fully-paid—are expected to be listed and begin trading in late November and mid-December 2025, respectively. There is no minimum subscription level, and any unsubscribed shares will be made available for excess application by Qualifying Shareholders.

The announcement highlights an irrevocable undertaking by the company’s Chairman and Chief Executive Officer, Ms. Lam, who currently holds (directly and through controlled corporations) a total of 38,304,444 Shares, representing about 53.90% of the issued share capital. Ms. Lam undertook to subscribe for her full provisional entitlement of 19,152,221 Rights Shares and to maintain her existing stake until the completion or termination of the Rights Issue.

Following a series of consecutive annual losses, the company intends to use the net proceeds to strengthen its financial position, specifically for the repayment of bank borrowings and interest payments. The proposed Rights Issue is not subject to further shareholder approval under Rule 7.19A of the Listing Rules and meets the dilution limit set out in Rule 7.27B.

Crocodile Garments Limited’s board of directors advises shareholders and potential investors to exercise caution when dealing in the company’s Shares or the Rights Shares. If all conditions are not fulfilled, the Rights Issue will not proceed, and any party dealing in relevant securities before completion bears the corresponding risk.