Artini China, a loss-making Hong Kong-based manufacturer of women’s accessories, has unveiled a plan to raise about HK$185.6 million from an open offer of new shares as it seeks new investment opportunities while restructuring poorly performing operations.
The company plans to issue 1.86 billion shares at 10 HK cents each, on the basis of three shares for one held. The shares being offered would represent 75 per cent of the issued share capital.
The offer price represents a 55.9 per cent discount to Artini’s last trading price of 22.7 HK cents before its suspension on Friday.
“The directors are of the view that the open offer allows the group to strengthen its balance sheet without facing increasing interest rates,” Artini said in a filing to the Hong Kong stock exchange. “The company is now moving ahead to restructure those businesses that are now operating at a loss or at a low profit margin, and at the same time seeking investment opportunities.”
About HK$25 million of the expected proceeds has been earmarked to fund expansion of its accessories retailing operation, HK$60 million for retailing other products, HK$32 million to repay short-tem loans and the rest for general working capital.
Artini also said it would consolidate its shares so that every two existing shares were consolidated into one.