HKC International Holdings Limited (248) has announced a proposed rights issue on the basis of one rights share for every two shares held. The subscription price is HK$0.28 per rights share, representing a discount of approximately 25.50% to the adjusted closing price on the last trading day before the announcement. The rights issue is non-underwritten, with no minimum subscription level.

According to the prospectus, the maximum of 77.83 million rights shares may be allotted. Upon full subscription, the gross proceeds would be approximately HK$21.80 million, with estimated net proceeds of around HK$20.90 million. The company intends to deploy about 90% of the net proceeds for repaying outstanding bank borrowings and the remaining 10% for general working capital.

The record date for determining entitlements is set for 16 February 2026, with the last date for acceptance and payment being 6 March 2026. HKC International Holdings Limited’s controlling shareholder, holding about 54.70% of the issued shares, has provided an irrevocable undertaking to subscribe for their provisional entitlement in full.

The directors have indicated that this approach offers existing shareholders the chance to maintain their proportional stake in the company while allowing HKC International Holdings Limited to improve its capital structure by lowering debt levels. If the conditions for the rights issue are not fulfilled, the rights issue will not proceed.