IRC (01029.HK): Two-for-One Rights Issue to Raise Up to HK$301.9m, Backed by Controlling Shareholder

NewTimeSpace News: On 27 October 2026, IRC Limited (stock code: 1029) proposed a rights issue on a two-for-one basis at HK$0.315 per rights share, issuing up to 958,461,441 rights shares on a non-fully underwritten basis to raise up to about HK$301.9 million (about US$38.7 million).

Gross proceeds would be about HK$301.9 million and, after estimated professional fees and related expenses of about HK$3.1 million, net proceeds about HK$298.8 million (about US$38.3 million), or about HK$0.312 per rights share. The issue is non-fully underwritten by controlling shareholder Axioma Capital FZE LLC, which holds 1,417,504,067 shares (about 73.95% of the issued shares); as the underwriter is the controlling shareholder, the underwriting agreement constitutes a connected transaction requiring independent shareholders' approval.

Together with the 2025 rights issue, the issue would increase the number of issued shares by more than 50%, so it requires approval by independent shareholders at an extraordinary general meeting, at which Axioma Capital and its associates must abstain. A circular is expected by 30 November 2026.

Net proceeds will be used as to about HK$276.1 million (92.4%) for mining and auxiliary equipment and infrastructure to fully replace the external mining contractor, expected to let the K&S mine complete all mining and blasting in-house from 2027 and save about US$10 million to US$15 million in direct production costs a year, and as to about HK$22.7 million (7.6%) for general working capital, both within 12 months of completion. If the issue is not fully subscribed, all net proceeds will fund the equipment.

The last day for cum-rights trading is 21 December 2026, with ex-rights trading from 22 December; transfer documents are due by 4:00 pm on 23 December.