KFM KINGDOM (03816) resumed trading with a gap up of nearly 19%. As of press time, the stock price rose 18.72% to HK$5.39, with a turnover of HK$1.7474 million.

KFM KINGDOM announced the issuance of convertible bonds with a principal amount of HK$360 million. Upon full exercise of the conversion rights at a conversion price of HK$2 per share, a total of 180 million conversion shares will be issued, representing 30% of the issued share capital.

The group expects to use approximately 25% of the net proceeds from the convertible bond issuance for expanding manufacturing investments in Suzhou, China and Malaysia; approximately 50% for general working capital; and approximately 25% for repaying bank loans.

In addition, Hong Kong Luxshare will acquire 342 million shares from KIG Real Estate, the controlling shareholder of the company, representing 57% of the issued share capital, at a total consideration of HK$684 million, equivalent to HK$2 per share. Upon completion of the transaction, Hong Kong Luxshare and its concert parties will hold 57% equity interest and will be required under the rules to make a mandatory general offer for all issued shares. The cash offer price is HK$2 per share. Hong Kong Luxshare will not increase the offer price.