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NetDragon Raises US$100 million through Issuance of 33 million Top-up Placing Shares

NetDragon announced today that the company issued 33 million top-up placing shares at a placing price of HK$23.70 per share to raise US$100 million. The placing price represents a discount of approximately 9.5% to the last closing price of HK$26.20 per share on 12 February 2020, and a premium of 1.6%, 7.1% and 12.4% versus the average closing prices of the past 10, 20 and 30 trading days respectively. Participants of this placement comprise mainly investors with international background, from China as well as overseas, and they include both traditional investment funds and hedge funds.

The estimated net proceeds (after deducting the commission payable to the placing agent, professional fee and other related costs and expenses in relation to the top-up placing and subscription) from the top-up subscription is approximately HK$774.28 million (approximately US$100 million) respectively. The Board intends to use the net proceeds for general corporate purposes and to fund the expansion of education business, including capitalizing on revenue opportunities globally, particularly in the emerging markets as well as user scaling and monetization of the online education ecosystem.

Note: Following the completion of this placement, the number of shares held by the company's controlling shareholders remains unchanged. All net proceeds, after deducting commission payable to the placing agent, professional fees and other related costs and expenses in relation to the top-up placing and subscription, will be injected into the company for corporate purposes. A top-up placement refers to a situation where management and/or major shareholders of the company would place their existing shares (old shares) held by them to independent third-party investors, and subsequently subscribe to new shares issued by the company at the same price. As such, there is no selling by management and/or major shareholders. A top-up subscription can quicken the fund raising process.

For more details, please visit HKEX website as below

https://www1.hkexnews.hk/listedco/listconews/sehk/2020/0213/2020021300059.pdf

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