CTF Services Limited Proposes Concurrent Repurchase and Issue of Convertible Bonds

Strategic Insights -

CTF Services Limited is taking measures to restore its public float to meet the minimum requirement prescribed by the Listing Rules. As of the date of the announcement, the company's public float is approximately 24.18%, which is slightly below the required 25%. To address this, the company proposes to conduct a concurrent repurchase of its existing convertible bonds and issue new convertible bonds. This initiative is seen as a way to restore public float as required under the Listing Rules. The company aims to use the net proceeds from the issue of the new convertible bonds to fund the concurrent repurchase and for general corporate purposes.

Key Takeaways:

  • CTF Services Limited's public float is approximately 24.18%, falling short of the 25% minimum requirement under the Listing Rules.
  • The company proposes to conduct a concurrent repurchase of its existing HK$780,000,000 4.00% Convertible Bonds Due 2025.
  • The concurrent repurchase will be carried out in accordance with the terms and conditions of the existing convertible bonds.
  • The company plans to issue new convertible bonds, with the Joint Bookrunners appointed to coordinate the pricing of the proposed issue.
  • The new bonds will not be placed with the retail public in Hong Kong and are expected to be offered to institutional investors.
  • The company intends to use the net proceeds from the issue of the new convertible bonds to fund the concurrent repurchase and for general corporate purposes.
  • The concurrent repurchase and issue of new convertible bonds are expected to restore the company's public float to meet the Listing Rules' requirements.

Statistics:

  • Current public float: approximately 24.18%
  • Minimum public float requirement: 25%
  • Amount of existing convertible bonds to be repurchased: HK$780,000,000
  • Face value of new convertible bonds: N/A, as the size, issue price, and other terms are to be finalised
  • Number of existing convertible bonds to be repurchased: 18,263,361 (based on the conversion of existing convertible bonds)
  • Number of new convertible bonds to be issued: N/A, as the exact number is dependent on finalised terms

Sources:

  • CTF Services Limited's announcement dated 10 July 2025
  • CTF Services Limited's announcement dated 15 January 2025
  • CTF Services Limited's announcement dated 22 January 2025
  • CTF Services Limited's announcement dated 23 May 2024
  • CTF Services Limited's announcement dated 30 May 2024
  • CTF Services Limited's announcement dated 24 March 2025
  • Dealer Manager Agreement dated 10 July 2025
  • Listing Rules of the Hong Kong Stock Exchange
  • Securities Act of the United States