ZHONGAN SERVICE's per share offering price of HKD 1.18 received moderate oversubscription in the public offering.

ZHONGAN SERVICE (02271) announced the results of its allocation. The offering price was set at HKD 1.18 per share. The final number of shares offered to the public in Hong Kong was 12.668 million, while the final number of shares available for international subscription was approximately 113 million, with the oversubscription rights remaining unexercised. The trading of shares, in board lots of 2,000 shares, is expected to commence on July 18, 2023 (Tuesday) at 9:00 am Hong Kong time on the Stock Exchange of Hong Kong.

After deducting underwriting commissions and other estimated expenses paid and payable by the company for the global offering, and assuming full non-exercise of the oversubscription rights, the estimated net proceeds from the global offering are approximately HKD 91.7 million. Approximately 55.0% of the proceeds will be used for strategic acquisitions and investments in property management companies, approximately 30.0% will be invested in hardware and software development for the company's projects, and approximately 15.0% will be allocated to community value-added services to enhance service supply, scale, and efficiency.

Preliminary indications show moderate oversubscription for the shares offered to the public in Hong Kong. A total of 1,690 valid applications have been received, including 2,332.8 million shares subscribed through the Central Clearing and Settlement System and online white form services, representing approximately 1.84 times the preliminary number of shares available for subscription in the Hong Kong public offering of 12.668 million shares. The final number of shares offered to the public in Hong Kong is 12.668 million shares, representing approximately 10.0% of the preliminary number of shares available for subscription in the global offering.

A total of 19 valid applications have been received from eligible ZHONGAN SERVICE shareholders for the reserved shares under the preferential offering, with a total subscription of approximately 659,800 shares, representing approximately 0.05 times the preliminary number of reserved shares available for subscription in the preferential offering of 12.668 million shares. The 659,800 reserved shares have been allocated to eligible ZHONGAN SERVICE shareholders. All unsold reserved shares are available for subscription in the international offering.

The shares offered for sale under the international offering have been slightly oversubscribed, representing approximately 1.63 times the preliminary number of shares available for subscription in the international offering of 113 million shares (including approximately 659,800 reserved shares under the preferential offering) (before any exercise of oversubscription rights). The final number of shares available for international subscription in the international offering is approximately 113 million shares, representing approximately 89.5% of the preliminary number of shares offered for subscription in the global offering (before any exercise of oversubscription rights).

In accordance with paragraph 13(7) of Appendix 6 to the Listing Rules, 17.1 million shares offered for sale under the international offering have been allocated to Guotai Junan Financial Products Co., Ltd., an associate client of joint bookrunner and joint lead manager Guotai Junan Securities (Hong Kong) Limited. Based on the offering price of HKD 1.18 per share, according to the cornerstone investment agreement, cornerstone investors will be allocated a total of 17.532 million shares, accounting for approximately 13.8% of the shares offered globally, and approximately 3.5% of the total issued shares and share capital after the completion of the capitalization issuance and global offering (assuming the exercise of the over-allotment option is not granted).