RUIFENG RENEW (SEHK: 00527) has announced a proposed placement of new shares. The company intends to issue up to a maximum of 343 million placement shares, with a minimum issuance of 80 million shares. The maximum number represents approximately 20.00% of the company's total issued share capital as of the announcement date and about 16.67% of the enlarged share capital following the placement.

The placement price has been set at HK$0.55 per share. This represents a discount of approximately 15.4% compared to the closing price of HK$0.65 per share on June 23.

Assuming the full allotment of the maximum 343 million placement shares, the gross proceeds from the placement are expected to be around HK$188.6 million. After deducting related expenses, the estimated net proceeds are approximately HK$185.7 million.

Allocation of Proceeds

The company plans to allocate the net proceeds as follows. Approximately 80.0% is earmarked for the group's future development initiatives. This portion is primarily reserved for the initial phase of development and construction of the Xuanhua Artificial Intelligence Computing Power Center, which is identified as a core vehicle for the group's expansion in computing power capabilities.

The remaining 20.0% of the net proceeds will be used to supplement the group's general working capital. This includes covering various daily operational expenses such as employee costs, rental expenses, and general administrative expenditures incurred in the ordinary course of business.