Ngai Lik Industrial (HKG:0332) has proposed an open offer of 226.576 million offer shares at HK$0.441 per share, or HK$99.92 million in total, on the basis of 2 offer shares for every 7 existing shares held. The company plans to apply the proceeds of HK$97.9 million from the open offer as general working capital.

The offer price per share represents 8.13% discount over HK$0.48, the stock's closing price yesterday.

Frontier Global Group Limited, holding 56.5% equity interest in the company, has irrevocably undertaken to the company that it will subscribe for all the offer shares it will be entitled under the open offer and has agreed to underwrite the offer shares. Immediately after completion of open offer and assuming that no other qualifying shareholders subscribe for the offer shares, Frontier Global's shareholding in the company will rise to 66.2%.