GLOBAL NEW MAT (06616.HK): To Issue RMB 1.3 Billion Convertible Bonds, Concurrently Repurchasing HKD 990 Million of Existing Bonds

NewTimeSpace News: On 18 September 2026, Global New Material International Holdings Limited (stock code: 06616) announced that on 17 September 2026 (after trading hours) it entered into a subscription agreement with the managers to issue 3.25% convertible bonds in the aggregate principal amount of RMB 1.3 billion, settled in Hong Kong dollars, at 100% of the principal amount, maturing on 22 September 2027. The conversion shares will be allotted and issued under the general mandate, and the issue does not require further shareholder approval.

The initial conversion price is HKD 10.93 per share, representing a premium of approximately 15.05% over the closing price of HKD 9.50 per share on 17 September 2026. Assuming full conversion, the convertible bonds would convert into approximately 139,093,323 conversion shares, representing approximately 11.14% of the total issued shares as at the date of the announcement. Estimated net proceeds are approximately RMB 1,280.7 million, to be applied to refinancing existing indebtedness, supplementing working capital and general corporate purposes, and are expected to be fully utilised by the end of the second quarter of 2027.

The Company also entered into an agreement with the dealer manager to concurrently repurchase its 2026 convertible bonds at 103% of the principal amount plus accrued interest. As at the date of the announcement, the Company had received undertakings from eligible bondholders to sell 2026 convertible bonds with an aggregate principal amount of approximately HKD 990 million, with approximately HKD 10 million of principal remaining outstanding; the concurrent repurchase will be funded by the net proceeds, and the repurchased bonds will be cancelled after settlement. The Company has obtained a waiver from the Stock Exchange from strict compliance with Rule 10.06(3)(a) of the Listing Rules.

Assuming full conversion at the initial conversion price, the total number of issued shares will increase from 1,248,441,781 to 1,387,535,104, and Dr. Su Ertian's shareholding will be diluted from 36.49% to 32.83%. The Board considers the concurrent repurchase a prudent debt management arrangement that enables the Company to optimise its debt maturity profile and financing structure.

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