WLS Holdings Limited (Stock Code: 8021) released details of a proposed Capital Reorganisation and a Rights Issue initiative. Under the Capital Reorganisation, each block of forty existing shares is set to consolidate into one share (par value HK$0.40), followed by a capital reduction that lowers the par value of each issued share to HK$0.01. Unissued consolidated shares would then be sub-divided back into shares at HK$0.01 each, and the company’s share premium account would be reduced to nil, with the resulting credits transferred to the company’s contributed surplus to offset accumulated losses or for legally permissible uses.

Contingent on the Capital Reorganisation’s effectiveness, the company also proposes a Rights Issue on a non-underwritten basis. Subject to conditions, each qualifying shareholder would have an entitlement of one rights share for every one adjusted share held. The subscription price is set at HK$0.24 per rights share, potentially raising up to HK$86.2 million (before expenses) and approximately HK$83.2 million in net proceeds if fully subscribed. The company plans to allocate the majority of the proceeds toward repaying borrowings, with the balance serving as working capital.

Any unsubscribed or excluded-ratio shares are scheduled to be placed on a best-effort basis, and the company noted that if the Rights Issue is undersubscribed, the total fundraising size will be reduced accordingly. Approval by independent shareholders at a special general meeting is required, with an indicative timeline provided in the announcement. Shareholders are advised to monitor official disclosures for updates and to exercise caution, as the Capital Reorganisation and Rights Issue each remain conditional on various factors, including regulatory approvals and fulfillment of listing requirements.