HKC International Holdings Limited Announces Major Rights Issue

HKC International Holdings Limited (HKC, Stock code: 248), a Cayman Islands-incorporated entity, has announced a significant rights issue that could have material implications for its shareholders and potentially impact its share price. This corporate action is detailed in the provisional allotment letter (PAL) and accompanying prospectus, and investors are urged to pay close attention to the key dates, terms, and conditions.

Key Points of the Rights Issue

• Rights Issue Ratio: Shareholders are entitled to subscribe for one (1) Rights Share for every two (2) Shares held on the record date.
• Subscription Price: Each Rights Share is offered at HK\$0.28, payable in full upon acceptance.
• Record Date: Shareholders registered as of Monday, 16 February 2026 are eligible for the allotment.
• Acceptance Deadline: The offer expires at 4:00 p.m. on Friday, 6 March 2026. Late submissions will not be accepted unless extended due to bad weather or extreme conditions.
• Settlement: Transactions involving Shares and Rights Shares (nil-paid and fully-paid forms) may be settled through CCASS, subject to HKSCC rules and operational procedures.

Important Information for Shareholders

• This PAL is valuable and transferable. Shareholders can transfer their rights to subscribe for the Rights Shares, but Hong Kong ad valorem stamp duty applies to each sale, purchase, or transfer of beneficial interest.
• Transfer and Splitting: Shareholders may transfer all or part of their rights, or split their provisional allotment. Transfers require completion of Form B (Transfer and Nomination) and Form C (Registration Application). Splitting must be done by 4:00 p.m. on Thursday, 26 February 2026 via the Registrar.
• Application for Excess Rights Shares: Qualifying Shareholders may apply for excess Rights Shares using the Excess Application Form (EAF) with a separate remittance. Excess shares may originate from unaccepted provisional allotments, entitlements of non-qualifying shareholders, or aggregated fractions.
• Fractional Entitlements: The company will not allot fractions of Rights Shares. These will be aggregated and allocated to satisfy excess applications or disposed of at the Directors’ discretion.
• Risks: The Rights Issue is conditional and may not proceed if all conditions are not fulfilled or waived. Shareholders trading nil-paid Rights Shares (from 24 February 2026 to 3 March 2026) should be aware of the risk that the Rights Issue may not become unconditional.
• Share Certificates and Refunds: Share certificates for fully-paid Rights Shares and refund cheques (if the Rights Issue does not proceed or for unsuccessful excess applications) are expected to be posted on Tuesday, 17 March 2026 by ordinary post, at the recipients’ own risk.
• Personal Data Collection: By submitting the PAL, shareholders consent to the use and processing of their personal data under the Hong Kong Personal Data (Privacy) Ordinance.

Potential Price-Sensitive Factors

• Dilution Risk: The Rights Issue will increase the total number of shares in circulation, possibly diluting existing shareholders’ holdings if they do not participate.
• Subscription Price vs. Market Price: The subscription price of HK\$0.28 may be at a discount to the market price, which could influence trading activity and share price volatility.
• Unconditionality: If the Rights Issue fails to proceed, investors expecting to acquire additional shares or trade nil-paid Rights Shares may face losses or refunds. This uncertainty can affect market sentiment.
• Trading Period Risks: The period for trading nil-paid Rights Shares is short and subject to the conditions of the Rights Issue. Any negative developments in the company’s business or market environment could impact the value of both the parent shares and Rights Shares.
• Ex-Rights Trading: Shares have been traded on an ex-rights basis since 6 February 2026. Investors who acquired shares after this date will not be eligible for the Rights Issue, which may affect share price dynamics.

Instructions for Shareholders

1. Review the PAL and prospectus carefully. Consult your financial adviser if unsure.
2. Complete the PAL intact and submit, with payment, to Union Registrars Limited by the deadline.
3. If transferring or splitting your rights, ensure all forms are completed and submitted by the specified dates.
4. For excess applications, use the EAF and submit a separate remittance.
5. Monitor company announcements for any changes to the timetable due to bad weather or extreme conditions.

Conclusion

The HKC International Holdings Limited Rights Issue is a major corporate event that presents opportunities and risks for shareholders. The offer price and ratio, conditionality, and potential dilution are all factors that could influence the company’s share price and investor decisions in the near term. All shareholders are encouraged to act promptly and carefully, and to consult professional advisers regarding their participation.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The details are subject to change and investors should refer to the official documents and announcements from HKC International Holdings Limited. Participation in the Rights Issue involves risks, including possible dilution and market volatility. Please consult your financial adviser before making any investment decisions.

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