Entering the end of the western month, the Henglong Rights Issue process has entered a critical practical stage.
Shortly after the end of Shareholders' Meeting this month, <Henglong Holdings Co., Ltd. Rights Issue Prospectus>, which was accurately finalized according to the resolution of Shareholders' Meeting, was officially published and sent to every registered shareholder by registered mail.
This heavy Legal Document is the "Bible" of this Rights Issue operation.
It details the Rights Issue ratio (10 for 4), the price per share (6.20 Hong Kong Dollar), the estimated total amount and use of funds raised, and all key dates (from the announcement date, the ex-rights date,
Record date to the final payment deadline), underwriter arrangements, risk factor reminders, and specific operational procedures for shareholders to exercise or transfer Rights Issue.
Its issuance signifies that all verbal arguments and strategic explanations have been reduced to black and white contracts and rules, and the Rights Issue program has entered the irreversible track of standardization.
Under the rule framework of <Rights Issue Charter>, the market began the final pricing game.
As of the last trading day before the ex-dividend date (April 26, Friday), the stock price of Henglong closed at 6.75 Hong Kong Dollar.
This is the consensus formed by market sentiment.
In the previous market, on the one hand, clear rules eliminated uncertainty;
On the other hand, shareholders are secretly calculating the theoretical price after ex-rights and their own choices.
This complex psychological game lasts until April 27.
This day is Monday, the ex-dividend day of Henglong.
According to the formula stated in the articles of association, its theoretical ex-rights reference price is:
(Pre-ex-rights stock price + Rights Issue price × Rights Issue ratio) / (1 + Rights Issue ratio) = (6.75 + 6.2 × 0.4) / 1.4 ≈ 6.5 Hong Kong Dollar
On that day, the stock price of Henglong opened at 6.5 Hong Kong Dollar.
However, the actual market reaction was relatively strong.
Many investors who have carefully studied the Articles of Association and agree that the funds will be used to reduce liabilities and improve Fundamentals regard it as a mid- to long-term benefit.
The strong Buying Pressure pushed the stock price out of an obvious "filling market" and closed at 6.68 Hong Kong Dollar that day.
Compared with Opening Price, the single-day increase is significant.
More importantly, the price of 6.68 Hong Kong Dollar is very close to the 6.75 Hong Kong Dollar before the ex-rights, indicating that market funds are quickly "filling" the theoretical price difference caused by the ex-rights, expressing recognition of the company's prospects with real gold Silver.
April 28, Tuesday, equity registration day.
This is the final moment to delineate Shareholder Register and determine the distribution qualifications of Rights Issue according to the <Rights Issue Charter>.
The stock price experienced a slight technical correction and closed at 6.50 Hong Kong Dollar, almost exactly at the theoretical ex-rights price.
The price makes the choice tricky:
If you sell Rights Issue, you can only get a meager price difference of about 0.3 Hong Kong Dollar per share, and there is not much left after deducting the cost;
Holding and subscribing is equivalent to buying an asset with a current price of 6.5 Hong Kong Dollar at a price of 6.2 Hong Kong Dollar, and there is still a clear discount.
Therefore, the trading of Rights Issue in the market is light, and most shareholders tend to choose to exercise their rights and subscribe according to the guidelines of the Articles of Association.
Subsequently, the market entered the "May Day" holiday.
According to the <Rights Issue Charter>, the Rights Issue trading window will last until May 19th (Friday), and the final Rights Issue payment deadline is May 26th (Zhou Xi).
The setting of this timetable is behind the far-reaching planning of Zhao Chen.
Based on the vague memory of Previous Life, he is convinced that the price of Bitcoin will exceed 2000 US Dollar in May.
He set the payment deadline on May 26, which actually reserved a safety buffer period for cashing out part of the Bitcoin market and completing cross-border fund transfers.
All actions must be completed strictly within the timetable specified in the Charter.
This May Day and Lin Wanqing are also in action.
On May 3rd, Lin Wanqing came to Detention Center again.
The rift between Lin Wanqing and Zhao Jianguo caused by the "leak" still exists, but the imminent common interests have once again put them at both ends of the negotiation table.
Lin Wanqing cut to the chase with a deadpan expression:
"The stock price is stuck at 6.5. Rights Issue May Day can be traded if the price is fake. That little price difference is tasteless."
Zhao Jianguo stared at her with a hoarse voice:
"If you don't make money by selling, it's even better to buy. This is our only chance to maintain our position."
"Buy?" Lin Wanqing seemed to have heard a fantasy, and placed his fingertips on a simple calculation paper in front of him.
"Calculate the general ledger. We have 64 million shares of Rights Issue in hand. If we buy them all at the price of 6.2, it will cost 397 million! Zhao Jianguo, can you change this money now?"
"In the trust..." Zhao Jianguo was interrupted just as he started.
"Almost empty!"
Lin Wanqing's voice was filled with suppressed anger and a hint of performative exhaustion.
"If I wasn't your good son who repeatedly forced me to deal with Off-Balance Sheet Liabilities, he wouldn't be as passive as I am today.
In order to stabilize the situation, I kept withdrawing money from the trust, and the available turnover was less than 100 million.
This is the last trump card, go all-in? If Zhao Chen makes other moves later, or the market direction changes, we won't even have the chips to turn around!"
"Then what do you think we should do? Watch our shares diluted to insignificance?"
Zhao Jianguo had blue veins popping up on his forehead.
Silence spreads in depression.
Lin Wanqing suddenly raised his eyes, a shrewd cold light flashed in his eyes:
"There are not only two ways to buy it and to scrap it all. Rights Issue, as long as the price is low enough, someone will always take it. The worst is to sell it with a broken bone."