Sanergy Group Limited Announces Completion of New Share Placement, Raising HK\$18.4 Million for Business Expansion and Liquidity

Key Highlights

• Sanergy Group Limited (Stock code: 2459) has successfully completed the placing of 228,000,000 new shares at HK\$0.083 per share under its general mandate.
• The placement raised gross proceeds of approximately HK\$18.9 million and net proceeds of about HK\$18.4 million after deducting fees, costs, and expenses.
• The new shares represent approximately 13.33% of the pre-placing issued shares and 11.76% of the enlarged share capital post-placement.
• The proceeds will be split equally between the development of the graphite electrodes business and general corporate purposes, including liquidity replenishment.
• No placee becomes a substantial shareholder as a result of the placing. All placees are independent third parties.

Detailed Analysis

Sanergy Group Limited announced the successful completion of its share placement exercise pursuant to the Placing Agreement, with completion taking place on 20 February 2026. The placement involved 228,000,000 new shares, which were allotted and issued at a price of HK\$0.083 per share to not less than six professional, institutional, or other investors. According to the company, the ultimate beneficial owners of all placees are independent third parties, and none has become a substantial shareholder as a result of this transaction.

The newly issued shares constitute a significant expansion of the company’s capital base. Prior to the placement, Sanergy had 1,710,000,000 shares in issue. Following the placement, the total number of shares increased to 1,938,000,000, with the new shares representing 11.76% of the enlarged share capital.

Use of Proceeds

The placement generated gross proceeds of approximately HK\$18.9 million and net proceeds of roughly HK\$18.4 million (with the net placing price per share being approximately HK\$0.081). The company provided a breakdown of how these funds will be utilised:

• 50% of the proceeds (about HK\$9.2 million) will be allocated to the development of the graphite electrodes business. This includes procurement of raw materials and/or graphite electrodes, payments for subcontracting and conversion costs, and other operating and overhead expenses.
• The remaining 50% (about HK\$9.2 million) will be used for replenishment of liquidity and general corporate purposes.

Shareholding Structure

The shareholding structure of Sanergy has changed as a result of the placement. The main points to note are:

• Utmost Prosperity Limited, connected through Mr. Hou Haolong, saw its holding diluted from 8.61% (147,278,000 shares) to 7.60% of the enlarged capital, though its absolute number of shares remains unchanged.
• The new placees collectively hold 228,000,000 shares, representing 11.76% of the enlarged share capital.
• Other existing shareholders’ combined interest falls from 91.36% to 80.61% of the company.

Potential Impact and Shareholder Considerations

• Dilution Effect: The issuance of a significant number of new shares results in a dilution of existing shareholders’ interests.
• Strategic Use of Funds: The focus on expanding the graphite electrodes business may be viewed positively by the market, depending on execution and future business performance in this segment.
• Liquidity Position: Strengthened liquidity may support both operational stability and future growth initiatives, potentially reducing financial risk.
• Share Price Sensitivity: News of successful fundraising and business expansion can impact share price, although dilution and the placing price being below market price may also exert downward pressure in the short term.
• No Change in Control: No new substantial shareholders have emerged, which means there is no significant shift in control or governance at this stage.

Board Composition

• Executive Directors: Mr. Peter Brendon Wyllie (Chairman), Mr. Adriaan Johannes Basson, Mr. Hou Haolong
• Non-executive Director: Mr. Wang Ping
• Independent Non-executive Directors: Mr. Cheng Tai Kwan Sunny, Mr. Ngai Ming Tak Michael, Ms. Chan Chore Man Germaine

Conclusion

The placing of new shares by Sanergy Group Limited represents a material development for both existing and prospective shareholders. The company’s ability to raise capital at this scale demonstrates ongoing investor confidence and provides resources to fuel further business expansion, particularly in the graphite electrodes segment, while also improving overall liquidity. Shareholders should monitor execution of these strategic initiatives and any resultant impact on the company’s financial performance and share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, an offer, or a solicitation to purchase or sell any securities. Investors should conduct their own due diligence or consult their financial advisor before making investment decisions.

View SANERGY GROUP Historical chart here