Guoen's (HKSE:8121) Share Price Doubled after Rights Issue

EQS Press Release 於 20/08/2024 發表 收藏文章
Well-run listed companies often achieve remarkable results when they encounter suitable partners in the capital markets. Guoen Holdings Limited ("Guoen") (HKSE: 8121) is a prime example. In February this year, Guoen announced a 1-for-2 rights issue at HK$1.04 per share, raising HK$17.3 million.

The Group offers a range of integrated digital marketing services, including social media management services, digital advertisement placement services and creative and technology services. Its strong financial position allowed it to become a shareholder of Meitu, Inc. (HKSE: 1357) and Hong Kong Exchanges and Clearing Limited (HKSE: 388) amidst the Hong Kong stock market downturn. It demonstrated the Group’s ability to seek returns for its shareholders.

After announcing the rights issue in February, the company's performance has been steadily improving. In June, it announced a positive profit alert and subsequently a net profit of HK$3.16 million for the full year ended 31 March, returning to profitability from a loss. The share price has recently been hovering above HK$2, doubling the rights issue price, bringing a promising return for all participating shareholders.

RaffAello Securities (HK) Limited also played an indispensable role in this rights issue. In the post-pandemic era, when Hong Kong companies face high-interest rates and shifts in consumer patterns, a Hong Kong startup-turned-listed company achieving such an encouraging result was a testament.

RaffAello itself is a designated placing agent for star tycoons over the past years, having helped many wealthy individuals and top-tier funds accumulate quality stocks in the secondary market over the years, making it a star investor its own. Historically, the stocks underwritten by RaffAello have often seen gains in multiples. It remains to be seen whether Guoen can ride the recovery of the Hong Kong stock market to scale new heights in the future.

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