Time Interconnect Technology Limited Completes HK\$1.63 Billion Share Placement: Key Details for Investors
Time Interconnect Technology Limited (Stock Code: 1729) has announced the successful completion of a major placement of new shares, raising approximately HK\$1,634.5 million. This development is significant for shareholders and potential investors as it represents a substantial expansion of the company’s capital base and could impact the company’s share price and future growth trajectory.
Key Points of the Share Placement
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Completion Date: The placement was completed on 20 February 2026 after all conditions in the Placing Agreement were satisfied.
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Number of Shares Placed: 108,000,000 new shares were issued, representing approximately 5.45% of the pre-placement share capital and 5.16% of the enlarged share capital.
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Placing Price: The shares were placed at HK\$15.22 per share. This price represents an approximate 8.85% discount to the average closing price of HK\$16.698 over the five trading days immediately prior to the last trading day before the placement.
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Proceeds Raised: Net proceeds after commissions and expenses amount to approximately HK\$1,634.5 million, equating to a net issue price of approximately HK\$15.13 per share.
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Investor Base: The shares have been placed to not fewer than six independent placees. Importantly, none have become a substantial shareholder as a result of the placement, and all are independent third parties.
Allocation and Use of Proceeds
The net proceeds from the placement will be strategically allocated as follows:
| Purpose |
Percentage |
HK\$ Million |
Expected Timeline |
| Strategic investments and acquisitions |
50% |
817.2 |
On or before 31 Dec 2027 |
| Development of global business and expansion of overseas operations |
30% |
490.4 |
On or before 31 Dec 2027 |
Working capital and general corporate purposes:
– Procurement of raw materials (10%)
– Production and overhead costs (8%)
– Other general corporate expenses (2%)
|
20% |
326.9 |
On or before 31 Dec 2026 |
The company is pursuing a dual-track growth strategy that involves both organic growth (such as expanding manufacturing and supply chain control) and inorganic growth (such as strategic investments and acquisitions). Vertical integration and horizontal integration, particularly in the cable business and high-growth medical technologies, are prioritized. However, all acquisition discussions are currently at a preliminary stage and no definitive agreements have been made.
Impact on Shareholding Structure
The shareholding structure of the company has shifted as a result of the placement:
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Luxshare Precision Limited remains the largest shareholder, although its holding has decreased from 69.61% to 66.02%.
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Public Float Increase: The public shareholding has increased from 29.27% to 32.92% due to the new shares being issued to placees and the general public.
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Total Shares Outstanding: Increased from 1,983,231,404 to 2,091,231,404.
Key Information for Shareholders
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Potential Dilution: Existing shareholders will see their stake diluted due to the increased number of shares in issue. However, the increased public float may enhance trading liquidity.
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Strategic Growth: The substantial funds raised will support the company’s expansion plans, both organically through business development and inorganically through potential acquisitions, which could drive future earnings growth.
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Timeline and Execution Risks: The company has set out an estimated timeline for the use of proceeds, but acknowledges that this may change depending on the progress of identifying suitable acquisition targets and completion of negotiations and due diligence.
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Price Sensitivity: The discount offered in the placement and the potential for strategic acquisitions or expansion could be price-sensitive, affecting the company’s valuation and share price in the short to medium term.
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Regulatory Compliance: The company has clarified a minor error in its earlier announcement regarding the calculation of the average closing price, confirming that the discount to the placing price is 8.85%.
Conclusion
The successful placement of new shares by Time Interconnect Technology Limited marks a significant milestone in the company’s growth strategy. The company is now well-capitalized to pursue both organic and inorganic expansion opportunities, which could have a material impact on its financial performance and share price. Shareholders should closely monitor further announcements regarding the use of proceeds, particularly any updates on potential acquisitions or strategic investments, as these could be major share price catalysts.
Disclaimer: The information provided in this article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult professional advisors before making investment decisions. The company’s plans and strategies are subject to change, and there is no guarantee that the anticipated benefits or timelines will be realized.
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