Many Idea Cloud (06696) announced that the board of directors proposes a rights issue on the basis of six rights shares for every one share held on the record date, at a subscription price of HK$0.4753 per rights share. The rights issue will offer up to 576 million rights shares to eligible shareholders, raising gross proceeds of approximately HK$273.8 million before expenses (assuming no further shares are issued or repurchased on or before the record date). If fully subscribed, the estimated net proceeds from the rights issue will be approximately HK$272.8 million.

The company intends to use the net proceeds from the rights issue for the following purposes: approximately 92.3% of the net proceeds will be used for AI model development; approximately 7.7% of the net proceeds will be used to purchase media resources (specifically online traffic from Kuaishou, WeChat Video, and Xiaohongshu platforms) to enable the group's clients to place advertisements on these online media platforms. The group expects to fully utilize these net proceeds by the end of 2026.