Smart City Development Holdings Limited (8268) has entered into a placing agreement with Chief Securities Limited to procure subscribers for up to 33.33 million new shares at HK$0.30 per share. These new shares represent approximately 11.57% of the company’s existing issued share capital and about 10.37% of the enlarged share capital upon completion.

The maximum gross proceeds from the share placing are expected to be HK$9.99 million, with estimated net proceeds of around HK$9.50 million after deducting relevant fees and commissions. The company intends to use approximately HK$3.00 million for repaying outstanding loans, HK$3.00 million for expanding its money-lending business, HK$2.00 million for its securities investments, and HK$1.50 million for general working capital.

The placing price represents a discount of about 7.69% against the closing price of HK$0.325 on the day of the agreement and a 3.23% discount against the average price of HK$0.31 in the preceding five trading days. The placing shares are proposed to be issued under the general mandate granted at the company’s annual general meeting, and no further shareholder approval is required. The completion of the placing is subject to conditions including approval from the Stock Exchange for the listing of and permission to deal in the new shares.