INKEVERSE placed 387.5 million shares at HKD0.85 each, a 19.81% discount to the prior close, raising net proceeds of HKD328.5 million. The new shares represent 16.67% of the company's enlarged share capital, diluting existing holders. The company did not disclose the specific use of proceeds.
INKEVERSE placed 387.5 million shares at HKD0.85 apiece, raising net proceeds of HKD328.5 million, the company said Wednesday.
The placement price represents a 19.81% discount to Tuesday's closing price of HKD1.06. The new shares account for approximately 16.67% of the company's enlarged share capital, diluting existing holders by roughly one-sixth. The company issued the shares directly through a subscription agreement rather than via a secondary sale by existing shareholders.
INKEVERSE did not disclose the specific use of proceeds. The company, a Hong Kong-listed livestreaming and social entertainment platform formerly known as Inke, operates primarily in China and Southeast Asia. The livestreaming sector has faced regulatory headwinds in China, with authorities tightening rules on content moderation and virtual tipping practices over the past two years. INKEVERSE has been expanding into overseas markets and diversifying beyond its core livestreaming business to reduce reliance on the domestic market.
The 19.81% discount is wider than the typical 5% to 10% range for Hong Kong accelerated placements, reflecting the size of the offering relative to the company's market capitalization. The placement adds 387.5 million new shares to the approximately 1.94 billion shares outstanding before the transaction, a significant increase in the float. The net proceeds of HKD328.5 million represent roughly 16% of the company's pre-placement market value.
For existing shareholders, the dilution reduces earnings per share by approximately 16.67% in the near term. The HKD0.85 placement price may serve as a technical reference level, though secondary market trading will determine the stock's trajectory. The discounted issuance suggests the company needs capital, likely for working capital, debt repayment, or strategic investments. Investors will watch for any subsequent announcements on capital deployment, with the next catalyst being the interim results expected later this year.
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