Pa Shun International Announces Major Rights Issue – Key Details for Shareholders

Introduction

Pa Shun International Holdings Limited (“the Company”) has announced a significant Rights Issue, a development that is likely to attract strong investor attention and could influence the Company’s share price. The Rights Issue is detailed in a prospectus dated 11 May 2026 and is accompanied by a Provisional Allotment Letter (PAL) sent to qualifying shareholders.

Key Highlights of the Rights Issue

• Basis of Rights Issue:
  Shareholders are provisionally allotted one (1) Rights Share for every two (2) Shares held as of the Record Date (Monday, 4 May 2026).
• Subscription Price:
  Each Rights Share is offered at HK\$0.01356, payable in full on acceptance.
• Important Dates:
  • Latest time for acceptance and payment: 4:00 p.m. on Tuesday, 26 May 2026
  • Dealing in nil-paid Rights Shares: Wednesday, 13 May 2026 to Wednesday, 20 May 2026 (both dates inclusive)
  • Expected date of allotment for fully-paid Rights Shares: on or before Thursday, 18 June 2026
  • Expected commencement of dealings in fully-paid Rights Shares: Monday, 22 June 2026
• Non-Underwritten Issue:
  The Rights Issue will proceed on a non-underwritten basis, regardless of the level of subscription.
• Eligibility:
  Only qualifying shareholders with shares registered in their names as of 4 May 2026 are eligible. Overseas shareholders may not be eligible due to local regulatory restrictions.
• Settlement Mechanism:
  Rights Shares (nil-paid and fully-paid) will be eligible for CCASS deposit, clearance, and settlement.
• Fractional Entitlements:
  No fractional Rights Shares will be allotted. Fractions will be aggregated and sold in the market, with unsold shares not issued.
• Conditions Precedent:
  The Rights Issue is subject to the fulfillment of conditions including the granting of listing and permission to deal in the Rights Shares by the Stock Exchange. If these are not met by Wednesday, 10 June 2026 (or a later date as determined by the Company), the Rights Issue will not proceed.
• Stamp Duty:
  Transfers of Rights are subject to Hong Kong ad valorem stamp duty, payable by both transferor and transferee.

Important Considerations for Shareholders

• Risk of Non-Completion:
  The Rights Issue is conditional. If the conditions are not satisfied, the issue will not proceed and may result in refunds to applicants. Shareholders and investors trading in the Company’s shares or nil-paid Rights Shares before all conditions are met bear the risk that the issue may not be completed.
• Price Sensitivity:
  Given that the Rights Issue is non-underwritten, any shortfall in acceptance could lead to dilution for non-participating shareholders. The subscription price is set at a discount to the prevailing market price, which could create arbitrage trading opportunities and potential volatility in share price.
• Share Dilution:
  Shareholders who do not take up their Rights Shares will face dilution of their shareholding percentage.
• Trading in Nil-Paid Rights Shares:
  Investors can trade nil-paid Rights Shares from 13 May to 20 May 2026. These instruments carry the risk of becoming worthless if the Rights Issue does not become unconditional.
• Payment and Application Procedure:
  Each application must be accompanied by a separate cheque or cashier’s order in Hong Kong dollars. Remittance should be made payable to “TRICOR INVESTOR SERVICES LIMITED – A/C No. 098” and crossed “Account Payee Only”.
• Transfer and Splitting:
  Rights can be transferred or split. Transfer involves completing Form B and C on the PAL, with payment of stamp duty. Splitting for partial acceptance or multiple transferees must be requested no later than 4:30 p.m. on Friday, 15 May 2026.
• Effect of Bad Weather or Extreme Conditions:
  If a tropical cyclone signal No. 8 or above, a “black” rainstorm warning, or “extreme conditions” are in force during key acceptance hours, the deadline may be extended. Investors must monitor company announcements for changes in the timetable.
• Dividend Entitlement:
  Rights Shares, when fully paid and issued, will rank pari passu with existing shares and will be entitled to all future dividends and distributions.

Procedures for Acceptance, Transfer, and Splitting

1. Full Acceptance:
   Lodge the PAL (Provisional Allotment Letter) intact with Tricor Investor Services Limited (17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong) together with remittance by cheque or cashier’s order for the full amount no later than 4:00 p.m. on 26 May 2026.
2. Transfer:
   Complete and sign Form B (Form of Transfer and Nomination) and hand the PAL to the transferee. The transferee must complete and sign Form C (Registration Application Form) and lodge the PAL with payment as above.
3. Splitting:
   To split the PAL for partial acceptance or transfer to more than one person, surrender the original PAL to the Registrar by 4:30 p.m. on 15 May 2026 for cancellation and issuance of new PAL(s).

Potential Price Sensitive Impacts

• Discounted Subscription Price: The Rights Shares are offered at HK\$0.01356, likely below the current market price, which may pose arbitrage opportunities and affect market trading behavior.
• Non-underwritten Nature: The lack of underwriting means the Company cannot guarantee full subscription, possibly resulting in lower-than-expected capital raised and dilution for non-participating shareholders.
• Conditionality: The Rights Issue is subject to specific conditions. If not met, the entire issue will be cancelled, causing potential short-term volatility and uncertainty.
• Trading Risks: Dealing in nil-paid Rights Shares carries risks as they could become valueless if the Rights Issue does not proceed.

Other Important Information

• Refunds: If the Rights Issue does not proceed, refund cheques, without interest, will be sent out on or before 18 June 2026.
• Data Protection: By submitting a PAL, applicants agree to provide their personal data to the Company and Registrar, subject to the Personal Data (Privacy) Ordinance.
• Governing Law: All matters relating to the Rights Issue are governed by the laws of Hong Kong.

Investor Actions and Warnings

• Exercise Caution: Investors are urged to exercise caution when dealing in the Shares or nil-paid Rights Shares, as the Rights Issue is subject to conditions and may not proceed.
• Consult Advisors: If in doubt about any aspect of the Rights Issue or actions to be taken, shareholders should consult their stockbroker, bank manager, solicitor, professional accountant, or other professional advisers.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should study the official prospectus and consult qualified professionals before making any investment decisions related to the Rights Issue. The Company’s share price may be volatile in light of this announcement, and past performance is not indicative of future results.

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