Jiading International Group Holdings Limited has unveiled a rights issue aimed at raising gross proceeds of up to HK$56.20 million. Shareholders registered on 10 December 2026 will be offered three new shares for every one share held at a subscription price of HK$0.45 per rights share. A maximum of 124.79 million new shares will be issued, equivalent to 300% of the current share capital and 75% of the enlarged share base of up to 166.38 million shares.
Net proceeds, estimated at HK$55.20 million after expenses (net subscription price: HK$0.442 per share), are earmarked for three principal purposes: HK$28.60 million to repay nine short-term loans maturing between June 2026 and August 2027; HK$14.60 million to fund advertising-segment working capital—including HK$8.00 million in supplier prepayments, HK$3.50 million for production costs, and HK$3.10 million for AI and data-analytics training; and HK$12.00 million to cover general administrative and corporate expenses such as staff remuneration and professional fees.
The subscription price represents discounts of 21.05% to the last closing price of HK$0.57 on 14 October 2026 and 19.79% to the five-day average closing price of HK$0.56. The theoretical dilution effect is approximately 15.79%. No underwriting or excess application arrangements are in place; any rights shares not taken up will be sold through a placing agent on a best-efforts basis, with net premiums (if any) distributed to shareholders who decline or are ineligible to subscribe.
Because the issue will expand the share count by more than 50%, Hong Kong GEM Listing Rules require approval from independent shareholders at a special general meeting scheduled for 27 November 2026. Conditional upon approval and regulatory clearance, nil-paid rights are expected to trade from 15–22 December 2026, with payment and acceptance due by 4:00 p.m. on 29 December 2026. Fully paid rights shares are slated to commence trading on 19 January 2027.
Shareholders who do not participate will face dilution; if no existing shareholders subscribe and all unsubscribed shares are placed, public investors introduced via the placing could own up to 75.00% of the enlarged capital. Jiading International’s cash and cash equivalents stood at approximately HK$0.40 million as of the announcement date, underscoring management’s view that an equity fundraising is the most cost-effective option compared with debt or placings.