GIANT BIOGENE (02367) plans to offer a discount of approximately 9.50% for its rights issue, with the maximum net proceeds expected to be approximately 2.294 billion Hong Kong dollars.

GIANT BIOGENE (02367) announced that on April 16, 2025 (after trading hours), the company, the vendor, and the joint book-runners entered into a placing and subscription agreement. Under this agreement, the vendor has agreed to sell 35 million shares at a price of HK$66.65 per share. The company has conditionally agreed to issue a corresponding number of new shares to the vendor (equivalent to the actual shares sold by the vendor) at a price of HK$66.65 per share. It is expected that no underwriter will become a major shareholder of the company after the completion of the placing and subscription. The placing price of HK$66.65 per share represents a discount of approximately 9.50% to the closing price of HK$73.65 per share on April 16, 2025. The total expected proceeds from the placing and subscription are approximately HK$2.33 billion, while the expected net proceeds (after deducting commissions and estimated expenses) are approximately HK$2.294 billion. The net proceeds from the placing and subscription are intended to be used for the development of core businesses and ecosystem layout, including but not limited to brand promotion, marketing, category expansion, overseas business, and research and development investment; as well as for supplementing working capital and general corporate purposes. The announcement stated that upon the completion of the placing and subscription, the group's financial strength, market competitiveness, and overall strength will be enhanced, promoting the long-term health and sustainable development of the group. The placing and subscription will also enrich the shareholder base by attracting high-quality institutional investors and further enhance share liquidity through the placement. The subscription shares will be issued pursuant to the general mandate for issuance and allotment. The vendor is a limited liability company registered under the laws of the British Virgin Islands. As of the date of this announcement, the vendor holds interests in 581,104,935 shares, representing approximately 56.10% of the company's existing issued share capital, and is a controlling tool with FY Family Trust as the beneficiary, with Dr. Fan Dai Di, spouse of executive director Mr. Yan Jianya, as the settlor and beneficiary.