Dong Yiqiang and Gong have each subscribed to 800,000 shares, representing 3.88% of the enlarged share capital of the company, while Dong Qunzhu, Hong and Kung have subscribed to 700,000, 600,000 and 500,000 shares, respectively.
Upon the allotment and issue of the subscription shares, Fuxing China’s issued and paid-up share capital of 17,205,438 shares, as at Jan 18, will increase to 20,605,438 shares.
The company is in the process of automating its manufacturing progressively to improve the quality of zippers produced, enabling more sales orders from new customer segments.
The proposed subscription was set out accordingly to tap on the equity market as an alternative and less costly source of funding as compared to bank borrowings to finance the automation process, and to conserve its cash reserves to support other working capital requirements of the group.
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Shares in Fuxing China closed unchanged at 25 cents on Jan 18.
