Dazhong Oral plans to issue up to 1.2 million shares at a 16.67% discount, raising approximately HK$11.5 million net.

Source: Dazhong Dental "Placement Agent for Placing New Shares Under General Mandate"

DentalGoodNews｜June 24, 2026 - Wuhan Dazhong Oral Medical Co., Ltd. (hereinafter referred to as "Dazhong Oral", 2651.HK) announced that it has entered into a placing agreement with the placing agent, Shenghang Financial Holdings Limited. Dazhong Oral intends to place up to 1,200,000 new H shares at a placing price of HK$10.00 per share to no fewer than six placees, with the expected maximum net proceeds from the placing amounting to approximately HK$11.50 million. The announcement stated that upon completion of this placing, the proportion of H shares will decrease from approximately 7.05% to about 6.58%, with an overall equity dilution of approximately 2.37%, but the shareholding structure of the company's controlling shareholder remains stable.

The placing price of HK$10.00 per share represents a discount of approximately 16.67% compared to the closing price of HK$12.00 per share quoted on the Stock Exchange on June 24, 2026 (the date of the placing agreement). Additionally, Dazhong Oral was listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2025, with an IPO offer price of HK$20.00 per share. Based on the above two prices, the placing price is approximately 50% lower than the IPO offer price (calculated as 10.00/20.00).

Regarding the use of proceeds, Dazhong Oral stated that the net proceeds from the placing will be used for: approximately 26.09% (about HK$3.00 million) for expanding online platform advertising; approximately 21.74% (about HK$2.50 million) for expanding business cooperation in the fields of marketing and investor relations; approximately 17.39% (about HK$2.00 million) for upgrading digital intelligent diagnostic and treatment equipment (including the procurement of AI-assisted diagnostic equipment, Intraoral Scanning｜IOS, etc.); approximately 17.39% (about HK$2.00 million) for enhancing overall dental service levels (including standardized management and customer management system upgrades); and the remaining approximately 17.39% (about HK$2.00 million) for general working capital.

According to previous reports by DENTALGOODNEWS (Leading Dental Industry Media, DGN), Dazhong Oral's Net Profit Attributable to Shareholders of the Parent Company for the fiscal year 2025 decreased by 32.8% year-on-year to RMB 28.175 million. This placing will provide the company with additional working capital support for purposes such as online promotion, market expansion, Digital Equipment upgrades, and service capability enhancement.