YUK WING GP (01536) has announced a proposed rights issue, offering up to 1.368 billion rights shares on a basis of one rights share for every three existing shares held.

Each rights share is priced at HK$0.1, representing a discount of approximately 27.01% compared to the closing price of HK$0.137 per share on the Stock Exchange on the last trading day.

The maximum net proceeds from the rights issue are estimated to be around HK$135 million.

Approximately 17.1% of the net proceeds will be used to settle deferred payments, while about 17.3% will be allocated to pay the exercise price of the subscription option.

Around 29.8% of the funds are designated for the business development of the target company, and about 3.7% will be used to expand business operations into the investment properties held by the target company after the expiration of existing leases.

The remaining 32.1% of the net proceeds will serve as general working capital for the group, covering expenses such as rental costs, salary expenses, professional fees, and other corporate or operational outlays.