Kwan On Holdings Limited (1559.HK) has released a prospectus dated 16 February 2026 detailing a proposed rights issue on the basis of one new share for every two existing shares held on the record date of 13 February 2026. The subscription price is set at HK$0.07 per rights share, offering the potential to raise up to HK$65.42 million before expenses on a non-underwritten basis.

According to the announcement, the company estimates net proceeds of approximately HK$63.62 million if fully subscribed. Of these proceeds, 70.70% is designated for repaying liabilities (including amounts owed to the controlling shareholder), 15.70% is earmarked for business development initiatives, and 13.60% is allocated to general working capital. Holders of the provisionally allotted rights shares must submit acceptances by 4:00 p.m. on 5 March 2026, with dealings in nil-paid rights shares scheduled from 23 February to 2 March 2026.

The controlling shareholder Sino Coronet, which currently holds around 55.61% of Kwan On’s issued shares, has provided an irrevocable undertaking to subscribe in full for its entitlement. The issuance is not underwritten, and if any portion of the rights shares is not subscribed, the final issue size will be reduced accordingly. The newly issued shares will rank pari passu with existing shares.