Leader Education Limited announced on 24 July 2026 that it has entered into a conditional placing agreement with DL Securities (HK) Limited to issue up to 133.33 million new shares under its existing general mandate.
Key terms • Size and dilution: The new shares equal 20.00% of current issued capital and will expand the share base to 800.00 million shares, diluting existing holdings to 83.33% of the enlarged share capital. • Pricing: The placing price is HK$0.265 per share, reflecting a 19.70% discount to the same-day closing price of HK$0.330 and a 16.40% discount to the five-day average of HK$0.317. • Proceeds: Gross proceeds are estimated at HK$35.33 million; net proceeds after 1.0% placing commission and other expenses are expected to be about HK$34.58 million, implying a net issue price of HK$0.259 per share. • Use of funds: Approximately 75% (HK$25.94 million) will finance development of digital and intelligent education initiatives—covering AI education models, AI digital teacher systems, automated teaching-material generation, and AI practical-training platforms—targeted for full deployment by 30 June 2027. The remaining 25% (HK$8.64 million) will serve general working-capital needs, including administrative, staff, and professional expenses. • Timetable and conditions: Completion is conditional on Stock Exchange listing approval and other customary conditions, with a long-stop date of 14 August 2026. The placing is on a best-effort basis; investors are advised that it may or may not proceed.
Post-transaction shareholding • Executive directors Liu Laixiang and Dong Ling (through Junhua Education and Shuren Education) will see their combined stake fall from 74.50% to 62.08%. • Placees will hold 16.67% of the enlarged equity. • Public shareholders’ interest will adjust from 25.50% to 21.25%.
Rationale Management views the equity placement as a faster and lower-cost capital-raising route than debt financing or an open offer, with the added benefit of broadening the shareholder base and improving share liquidity.
A listing application for the new shares will be submitted to the Stock Exchange. Until completion conditions are met, shareholders and potential investors should exercise caution when dealing in Leader Education shares.