Shenzhen Investment Holdings Bay Area Development Company Limited (Bay Area Dev) announced that it has signed a subscription agreement with Shandong Hi-Speed (Hong Kong) Investment Co., Ltd. to issue 250 million new shares at HK$1.83 per share.
The placement price represents a 5.00% discount to the HK$1.93 closing price on 12 June 2026 and a 5.49% discount to the five-day average of HK$1.94. The new shares equal 8.11% of Bay Area Dev’s existing share capital and 7.50% of the enlarged base, increasing total issued shares from 3,081.69 million to 3,331.69 million.
Gross proceeds will reach HK$458.38 million, with net proceeds of approximately HK$456.00 million after expenses. Management plans to allocate about 60% of the funds to the ongoing reconstruction and expansion of the Guangzhou–Shenzhen section of the Beijing–Hong Kong–Macao Expressway, and about 40% to land-use projects along the route, other business expansion and general working capital.
The shares will be issued under the company’s existing general mandate, so no additional shareholder vote is required. Completion is subject to customary regulatory approvals, including Stock Exchange listing consent, and must occur within ten business days after all conditions are met.
Shandong Hi-Speed, ultimately controlled by the Shandong Provincial SASAC, will gain the right to nominate one non-executive director while its stake remains above 3%. Bay Area Dev cited the investor’s infrastructure expertise and potential operating synergies as strategic benefits.
Upon completion, controlling shareholder SIICHIC’s stake will fall to 66.44% from 71.83%, while Shandong Hi-Speed will hold 7.50% and other public shareholders 26.06%.
If the transaction closes before the record date for the 2025 final dividend, the per-share payout will adjust from RMB7.60 cents to RMB7.03 cents, preserving the aggregate distribution of RMB234.21 million.
Bay Area Dev focuses on expressway assets and related land development in the Greater Bay Area. The subscriber’s parent, Shandong Hi-speed Company Limited, is a Shanghai-listed infrastructure operator with a 63.57% stake held by Shandong High-Speed Group Co., Ltd.