NIU Holdings Limited (Stock Code: 8619) has released details of a proposed Rights Issue on a non-fully underwritten basis, accompanied by a connected transaction relating to an underwriting agreement with a substantial shareholder.
The company plans to issue up to 289,090,000 new Rights Shares at HK$0.107 each. This is on the basis of two Rights Shares for every one existing share held by qualifying shareholders on the record date. The maximum gross proceeds could reach approximately HK$30.933 million, with estimated net proceeds of around HK$30.383 million after deducting professional fees and expenses. The net price per Rights Share is estimated at HK$0.105.
The substantial shareholder, Mr. Yuen—who is also the Chairman and a non-executive Director—is underwriting the Rights Issue to the extent that his shareholding (including the new Rights Shares subscribed) will not trigger a general offer obligation. Mr. Yuen currently holds 21,823,600 shares, representing around 15.10% of NIU Holdings Limited’s issued share capital. By way of an irrevocable undertaking, Mr. Yuen confirmed he will subscribe for his full assured entitlements. In addition, the company entered into a placing agreement with First Shanghai Securities Limited to place any unsubscribed and non-qualifying Rights Shares on a best-effort basis.
Under the terms of the GEM Listing Rules, as the Rights Issue would increase the company’s issued shares by more than 50%, the transaction is subject to approval by independent shareholders at an extraordinary general meeting. Any non-qualifying shareholders’ entitlements, or rights not taken up, will be dealt with through a compensatory arrangement that could return net gains (if any) to relevant shareholders.
According to the announcement, the company will apply to the Stock Exchange for the listing and permission to deal in the nil-paid and fully paid Rights Shares. The expected timetable indicates key dates for the closure of the register of members and subscription cutoffs, while cautioning investors that the plan depends on conditions being fulfilled (including regulatory approvals). Any lapse or termination of the underwriting arrangement would halt the Rights Issue.
Interested parties are advised to review NIU Holdings Limited’s official circular and related announcements for complete information regarding the timetable, conditions, and procedures of this proposed Rights Issue and connected transaction. The company reiterates that shareholders and potential investors should exercise caution when dealing in its securities, as the transaction remains subject to various regulatory and procedural requirements.