International Business Digital Technology Limited (1782) released additional information regarding its previously announced placing of up to 28 million new shares under a general mandate. The maximum expected net proceeds from the placing is approximately HK$99.72 million. According to the company’s disclosures, the funds are allocated to drive core research and development (R&D), expand virtual asset services in overseas markets, and support general working capital needs.
The announcement shows that as of 30 June 2025, the group’s cash and cash equivalents stood at around RMB52 million (excluding RMB29 million unutilised net proceeds from an April 2025 placing), with an additional RMB17.1 million unutilised proceeds remaining from that earlier fundraising. Management anticipates operating cash outflows, excluding innovative R&D expenses, to range between RMB22 million and RMB25 million per year, and approximately RMB18.2 million will go toward foundational work for a virtual asset services platform.
The new placing proceeds are primarily designated for three novel AI-powered technologies, categorized under “new APM Projects,” accounting for around 65.18% of the raised proceeds. These initiatives aim to transform existing performance monitoring tools into proactive, self-healing systems, enhance multi-modal data analysis, and automate operations for IPTV/OTT security and quality monitoring. Around 20.06% is allocated to scaling and market expansion of the company’s planned virtual asset services in selected overseas markets, particularly in the United Arab Emirates. The remaining 14.76% will supplement general working capital, contributing to staff remuneration, raw materials, and other administrative costs through 31 December 2027.
The company highlights that recent macroeconomic headwinds and accelerated technology shifts have increased the need for stable liquidity. Management views the proposed placing as essential for remaining competitive, developing the virtual asset business, and preserving a prudent capital structure. The placing remains subject to the fulfillment of conditions set forth in the placing agreement, and there is no assurance it will proceed as planned.