Xiamen Jihong raises US$13.9M in discounted H share placing to fund Europe, Middle East push
What's the deal? Xiamen Jihong TechnologyDealroom has a profile for this one. Try Dealroom → has completed a US$13.9M post-IPO equity placing, issuing 9,371,500 new H shares under its general mandate. The shares were placed at US$1.48 each to at least six independent third-party investors, generating net proceeds of roughly US$13.6M.
Why the discount? The placing price marked a 17.02% discount to the last closing price of US$1.78 and a 16.68% discount to the five-day average. The announcement said the discounts were "significant and may be considered price sensitive," reflecting market conditions and the company's aim to secure funding quickly.
What's the money for? Some 80% of net proceeds, about US$10.9M, will fund the company's cross-border social e-commerce business. That includes roughly US$5.45M for expansion in Europe, with a focus on Northeastern Europe, and the Middle East, plus US$4.09M for self-developed brands and US$1.37M to upgrade the "Giikin" system's AI and data technologies.
The remaining proceeds are split between supply chain optimisation and the FMCG paper packaging business, and general working capital.
Who holds what? The new shares represent about 12.13% of existing H shares and 2.09% of enlarged issued capital. The largest shareholder group — led by Ms. Zhuang Hao and acting in concert — saw its stake dip slightly from 25.78% to 25.24%, retaining control. No new substantial shareholder emerged.
The signal: The discounted, fast-turnaround placing points to a company prioritising speed over price to bankroll international growth. With most of the capital earmarked for cross-border e-commerce and AI, Xiamen Jihong is betting its next leg of growth lies well beyond China.
Read more: Minichart
