Quantgroup Plans Discounted Share Placement to Raise Approximately HK$162.6 Million

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Yesterday

Quantgroup (02685) has announced that on September 16, 2026, it entered into a placing agreement with joint placing agents. The company agreed to appoint the joint placing agents, who conditionally agreed to act as its agents to use best efforts to procure no fewer than six placees to subscribe for up to 48,529,400 placing shares at a placing price of HK$3.40 per share, in accordance with the terms and conditions set out in the placing agreement.

The placing price of HK$3.40 per share represents a discount of approximately 15.32% to the closing price of HK$4.015 per share as quoted on the Stock Exchange on September 16, 2026. The placing shares represent approximately 8.54% of the company's expanded issued share capital. Assuming all placing shares are fully subscribed, the total gross proceeds from the placing are expected to be approximately HK$165 million, with net proceeds estimated at approximately HK$162.6 million, implying a net placing price of approximately HK$3.35 per placing share.

Where the funds will be allocated

The company intends to deploy the proceeds in the following proportions: (i) approximately 55% for e-commerce business development. These funds will primarily support business expansion in the e-commerce segment, including platform APP traffic acquisition, user operations, supply chain payment settlements, channel development, and related operational expenditures, underpinning the growth of the e-commerce business scale.

(ii) approximately 15% for research and development investment. The proceeds will be directed toward technology R&D efforts, covering technical team compensation, data platform and intelligent system upgrades, as well as cloud server resources, third-party technical services, and new product prototype development costs, to continuously enhance the platform's technological capabilities.

(iii) approximately 30% as general working capital. These funds will supplement the group's daily working capital needs, fulfilling operational liquidity requirements, including administrative, financial, legal, and HR management expenses, repaying operational payables, and reserving a capital buffer for business development, thereby ensuring the group's overall business operations remain stable.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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