PENGO HLDG GP plans to increase its registered capital to HKD 500 million and intends to issue convertible bonds with a total principal amount of up to HKD 120 million
PENGO HLDG GP plans to increase its authorized share capital from HKD 100 million to HKD 500 million and intends to issue convertible bonds of up to HKD 120 million. The capital increase requires approval from a special general meeting of shareholders. The initial conversion price of the convertible bonds is HKD 0.218 per share, representing a discount of approximately 14.5% to the closing price on August 1, 2025. The net proceeds from the placement are expected to be approximately HKD 118.4 million, of which 84.5% will be used for the pumped storage power station project and 15.5% for the group's daily operating funds
According to the Zhitong Finance APP, PENGO HLDG GP (01865) announced that the board of directors proposed to increase the company's registered capital from HKD 100 million (divided into 1 billion shares) to HKD 500 million (divided into 5 billion shares) by adding an additional 4 billion unissued shares. The increase in registered capital is subject to shareholder approval through an ordinary resolution at a special general meeting of shareholders and will take effect after the relevant ordinary resolution is passed on the date of the special general meeting.
On August 1, 2025 (after trading hours), the company entered into a placement agreement with the placement agent, intending to place convertible bonds with a principal amount of up to HKD 120 million to no fewer than 6 subscribers through the placement agent. The convertible bonds come with the right to convert into shares at an initial conversion price of HKD 0.218 per share (subject to adjustment). The conversion price represents a discount of approximately 14.5% to the closing price of HKD 0.255 per share on August 1, 2025.
Assuming the placement agent fully places the convertible bonds, the net proceeds from the placement will be approximately HKD 118.4 million, with 84.5% allocated for the project development costs of the first phase of the pumped storage power station project; approximately 15.5% will be used for the group's working capital to cover daily operating expenses (including employee costs and rental expenses) and to settle payments to suppliers and subcontractors
