Alco Holdings Limited to Launch Substantial Rights Issue; Special General Meeting Scheduled

Key Points from the Notice to Shareholders

• Special General Meeting (SGM):
  The SGM will be held on Friday, 15 May 2026, at 11:00 a.m. at 24/F, OfficePlus @Wan Chai, 303 Hennessy Road, Wan Chai, Hong Kong.
• Proposed Rights Issue:
  The Company proposes a rights issue of up to 229,113,720 ordinary shares (“Rights Shares”) at a subscription price of HK\$0.55 per Rights Share.
• Entitlement Ratio:
  Qualifying shareholders will be entitled to subscribe for four (4) Rights Shares for every one (1) existing share held on the record date.
• Record Date:
  The record date for determining entitlements under the rights issue will be set out, and the register of members will be closed from Monday, 11 May 2026 to Friday, 15 May 2026 (both days inclusive).
• Non-Qualifying Shareholders:
  Shareholders with registered addresses outside Hong Kong may be excluded from participating, subject to legal and regulatory considerations.
• Shareholder Action Required:
  Shareholders are entitled to vote on the resolutions at the SGM and may appoint proxies if unable to attend in person.

Important Details for Investors and Shareholders

• Significant Potential Dilution:
  The proposed rights issue could result in a substantial increase in the number of shares in issue, which may lead to dilution of existing holdings for shareholders who do not take up their rights. Investors should carefully consider whether to participate.
• Price-Sensitive Information:
  The rights issue price (HK\$0.55 per Rights Share) may represent a discount to the prevailing market price, which could affect share price performance both before and after the issue. The large size of the issue (four rights shares for every one held) is likely to be a share price moving event.
• Regulatory Approval:
  The rights issue is conditional upon the Stock Exchange of Hong Kong granting approval for the listing and permission to deal in the Rights Shares. If such approval is not granted, the rights issue will not proceed.
• Board Authorization:
  Directors are empowered to make necessary arrangements regarding non-qualifying shareholders, execute all related documents, and take all steps to implement the rights issue.
• Proxy Arrangements and Meeting Attendance:
  Shareholders may appoint one or more proxies to vote at the SGM. Proxy forms must be submitted to Tricor Investor Services Limited no later than 48 hours before the meeting.
• Trading Suspension During Book Closure:
  No share transfers will be registered during the book closure period. Shareholders wishing to participate must ensure their shares are registered by 4:30 p.m. on Friday, 8 May 2026.
• Force Majeure Arrangements:
  In the event of severe weather or government-declared extreme conditions, the SGM will be postponed, with details to be announced on the company and Stock Exchange websites.

Potential Share Price Implications

This rights issue is a major, price-sensitive event. The proposed offer of four new shares for every one currently held, at a significant discount to market, is likely to be highly dilutive if shareholders do not participate. On one hand, shareholders who take up their rights will have the opportunity to invest at a potentially attractive price. On the other, those who do not may see their holdings diluted, and the share price may initially adjust to reflect the discounted offer price. The outcome of the SGM and final terms of the rights issue will be closely watched by the market.

This is a critical capital-raising event for Alco Holdings and will likely be a share price moving catalyst.

Logistical and Administrative Notices

• Proxy forms and relevant authorizations must be submitted in a timely manner.
• The form of proxy is available on both the Stock Exchange and company websites.
• Shareholders should monitor for official announcements regarding any changes to the meeting schedule.
• In case of discrepancies between English and Chinese versions of the notice, the English version prevails.

Directors and Company Information

• Executive Director: Mr. Zheng Yuxing
• Non-Executive Director (Chairman): Ms. Pan Ying
• Independent Non-Executive Directors: Mr. Chu Hoi Kan, Mr. Lam Chi Wing, Mr. Tang Sher Kin
• Company Secretary: Yu Ngai

Disclaimer: This article is for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell securities. Investors should refer to the official company circular and consult their financial advisers before making any investment decisions. The writer and publisher accept no liability for actions taken in reliance on this article.

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