KINGBOARD HLDG (00148.HK) placed 155 million shares of KB LAMINATES (01888.HK) at HKD76 apiece, an 11.5% discount to the prior close, raising net proceeds of about HKD11.77 billion. The parent company's stake in the electronic materials maker will drop to 61.7% from 66.62%. Proceeds will fund PCB investments, capacity expansion, R&D and debt repayment.
KINGBOARD HLDG (00148.HK) placed 155 million shares of KB LAMINATES (01888.HK) at HKD76 apiece, an 11.5% discount to the prior close, raising net proceeds of about HKD11.77 billion. The parent company's stake in the electronic materials maker will drop to 61.7% from 66.62%. Proceeds will fund PCB investments, capacity expansion, R&D and debt repayment.
KINGBOARD HLDG placed 155 million shares of KB LAMINATES at HKD76 each, raising net proceeds of HKD11.77 billion.
The company said the proceeds will be used for investments in its printed circuit board business to enhance capabilities in multi-layer and HDI products, expand production capacity, accelerate R&D initiatives and repay existing bank loans.
The placing price represents an 11.5% discount to KB LAMINATES' closing price of HKD85.9 on June 16. The 155 million shares represent about 4.92% of the total issued share capital. Post-placement, KINGBOARD HLDG's direct and indirect stake will fall to 61.7% from 66.62%.
The placement comes as KB LAMINATES shares surged 18% to a record high, with Citi raising its price target to HKD100 from HKD80 on expectations of stronger AI glass fiber fabric profitability. The broker projects KB LAMINATES' 1H26 net profit will jump 297% year-over-year to HKD3.71 billion, with revenue rising 80% to HKD17.3 billion.
KB LAMINATES shares rose 0.9% in afternoon trading after gaining 18% the previous session to hit a record HKD77.35. Citi's bullish outlook followed a site visit to Grace Fabric Technology, a leading Chinese AI glass fiber fabric producer, where it identified positive implications for KB LAMINATES. The broker said the average selling price of electronic-grade e-glass fabric is expected to continue rising in the second half of 2026 due to limited weaving machine supply. The contribution of AI glass fiber fabric to KB LAMINATES' total gross profit is projected to surge to 17.4% by 2028 from 6.9% in 2026.
KINGBOARD HLDG shares rose 8.8% on the day.
The placement allows KINGBOARD HLDG to monetize part of its stake in KB LAMINATES at elevated valuations while reinvesting in its core PCB operations. Investors will watch for KB LAMINATES' 1H26 results expected in mid-August, with a potential profit alert as early as mid-July.
This article is for informational purposes only and does not constitute investment advice.
