CTF Services Limited Proposes Concurrent Repurchase of Convertible Bonds and Issue of New Bonds

Strategic Insights -

CTF Services Limited has announced plans to conduct a concurrent repurchase of existing convertible bonds and issue new convertible bonds to restore public float in accordance with the Listing Rules. The proposal aims to address the Company's current public float level of approximately 24.18%, which is below the minimum requirement of 25% prescribed by the Listing Rules. The Company intends to issue new convertible bonds and has already received commitments from eligible bondholders to sell approximately HK$566 million in aggregate principal amount of the existing convertible bonds.

Key Takeaways:

  • CTF Services Limited proposes to conduct a concurrent repurchase of existing convertible bonds and issue new convertible bonds to restore public float.
  • The Company's current public float level is approximately 24.18%, which is below the minimum requirement of 25% prescribed by the Listing Rules.
  • The proposal aims to address the Company's public float level and comply with the Listing Rules.
  • The Company has received commitments from eligible bondholders to sell approximately HK$566 million in aggregate principal amount of the existing convertible bonds.
  • The remaining outstanding aggregate principal amount of the existing convertible bonds is approximately HK$74 million.
  • The Company proposes to issue new convertible bonds and appoint a sole dealer manager to assist in the repurchase and issue of the new bonds.
  • The repurchase price will represent 100% of the aggregate principal amount of the existing convertible bonds and the accrued and unpaid interest on the bonds offered for repurchase.

Statistics:

  • Public float of CTF Services Limited: approximately 24.18%
  • Minimum public float requirement: 25% prescribed by Rule 8.08(1)(a) of the Listing Rules
  • Aggregate principal amount of existing convertible bonds to be repurchased: approximately HK$640 million (HK$566 million committed + HK$74 million remaining)
  • Repurchase price: 100% of the aggregate principal amount of the existing convertible bonds and the accrued and unpaid interest on the bonds offered for repurchase
  • Date of this announcement: Not specified
  • Date of proposal: Not specified

Sources:

  • CTF Services Limited (Hong Kong) - Announcement dated 10 July 2025 (available at: https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0711/2025071100011.pdf)
  • Listing Rules of the Hong Kong Exchange (Rule 8.08(1)(a))