Madison Holdings completes 3-for-2 rights issue; secures HK$42.79 million net, major dilution offset by full placement of unsubscribed shares

Bulletin Express
Jul 09

Madison Holdings Group Limited has finalised its non-underwritten rights issue, offering three new shares for every two held at HK$0.486 each.

Subscription outcome • Only two valid applications were received by the 12 June 2026 deadline, covering 25.83 million rights shares, or 27.63% of the 93.47 million shares on offer. • The remaining 67.64 million shares (72.37% of the offer) were successfully placed on 3 July 2026 with seven independent investors at the same HK$0.486 price, leaving no residual shares or distributable net gain for non-participating shareholders. • All conditions were met and the issue became unconditional on 6 July 2026.

Proceeds and allocation • Gross proceeds: approximately HK$45.43 million. • Net proceeds after expenses: approximately HK$42.79 million. • Planned use of funds: – HK$24.80 million (58.0%) to repay a shareholder loan. – HK$14.99 million (35.0%) to reduce other borrowings (outstanding HK$16.99 million at 12% p.a., amortising from Dec 2025 to Apr 2028). – HK$3.00 million (7.0%) earmarked for general working capital.

Post-issue shareholding Total issued shares expanded from 62.31 million to 155.78 million. Key movements include: • Royal Spectrum’s stake diluted from 31.44% to 12.58%. • Vehicles related to Mr Ting collectively hold 16.33% post-transaction. • Seven new placees own 67.64 million shares, representing 43.42% of the register. • Public float rises to 29.12%.

Share option adjustments Following the enlarged capital base, option exercise prices and quantities have been recalibrated: • 3 Apr 2018 grant: exercise price cut to HK$133.01 (from HK$189.00); options increase to 1.47 million (from 1.04 million). • 13 Dec 2018 grant: exercise price cut to HK$78.82 (from HK$112.00); options rise to 0.68 million (from 0.48 million). • 6 Dec 2019 grant: exercise price cut to HK$14.57 (from HK$20.70); options rise to 0.92 million (from 0.65 million). Auditor Prism Hong Kong Limited has confirmed compliance with the company’s Share Option Scheme and GEM rules.

Next steps Fully-paid rights share certificates are scheduled for dispatch on 10 July 2026, with trading on the Stock Exchange commencing at 9:00 a.m. on 13 July 2026.

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