Shares of SINOFORTUNE-NEW (08123) resumed trading this morning, experiencing a sharp initial surge of up to 173%.

At the time of writing, the stock was up 105.67%, trading at HK$0.29 with a turnover of HK$2.72 million.

The significant price movement follows the company's announcement regarding a capital injection by a major shareholder.

The company disclosed that Executive Director and substantial shareholder Wang Jiawei has subscribed for approximately 215 million new shares at an issue price of HK$0.10 per share.

The total subscription amount of HK$21.55 million payable by Wang will be settled by offsetting an equivalent amount of shareholder loans owed by the company to him.

Upon completion of this subscription, Wang Jiawei and his concert parties will hold approximately 73.51% of the company's enlarged share capital.

Consequently, Wang is required under takeover rules to make a mandatory unconditional cash offer for all the issued shares.

The offer price is set at HK$0.10 per share, representing a discount of approximately 29.1% to the last closing price of HK$0.141 before the trading halt.