ZHONGAN SERVICE (02271) and its parent company announced a proposed placement of up to 51.74 million placement shares. This represents approximately 10% of the total issued shares of ZHONGAN SERVICE as of the announcement date, and about 9.09% of the enlarged issued share capital following the completion of the placement. The placement price has been set at HK$1.52 per share.

Assuming the full placement of the 51.74 million shares, the gross proceeds are expected to be approximately HK$78.65 million, with net proceeds estimated at around HK$77.69 million. ZHONGAN SERVICE intends to allocate the net proceeds from the placement for the group's general working capital purposes.

As of the announcement date, ZHONGAN SERVICE is an indirect non-wholly owned subsidiary of its parent company, which indirectly holds approximately 71.28% of the issued shares of ZHONGAN SERVICE. Assuming no change in the issued share capital of ZHONGAN SERVICE from the announcement date until the completion of the placement, the parent company's stake in ZHONGAN SERVICE would be diluted from about 71.28% to approximately 64.80%, representing a decrease of roughly 6.48 percentage points.

This dilution of the parent company's interest in ZHONGAN SERVICE following the placement will be treated as a deemed disposal under the relevant listing rules. After the placement is completed, ZHONGAN SERVICE will continue to be an indirect non-wholly owned subsidiary of its parent company, and its financial results will continue to be consolidated into the parent company's financial statements.