Kaifeng Holdings passes cash capital increase and is expected to raise up to 25 billion yuan

The board of directors of Kaiji Fund Holdings today (30th) approved the cash capital increase and issuance of ordinary shares.

The board of directors of Kaiji Fund (2883) today (30th) passed the cash capital increase and issuance of ordinary shares. The maximum number of shares to be issued is 720 million shares. The fund-raising scale is expected to be approximately NT$20 billion to NT$25 billion, of which more than 70% will be invested in KGI Securities, whose profits increased by 235% in the first eight months of this year. The actual amount of funds raised will be subject to the approval of the competent authority and based on the final issuance price.

Capital Capital Holdings said that thanks to the development of the AI ​​industry, which has driven Taiwan's economic growth, and the continued activity of the capital market, the demand for corporate financing, wealth management and financial product transactions has grown steadily. In order to seize market development opportunities and support the capital required for business expansion, more than 70% of the capital increase is planned to be invested in KGI Securities. In addition to expanding the scale of core business, it will also enhance the group's capital utilization efficiency and future profit growth momentum.

KGI Securities’ cumulative after-tax net profit in the first eight months of this year reached 22.754 billion yuan, continuing to hit a record high for the same period last year, an increase of 235% over the same period last year, and the annualized return on shareholders’ equity reached 44%, leading the industry. In terms of investment banking business, it is deeply involved in core industries such as AI and semiconductors. In the first eight months, the market share of total underwriting amount was close to 40%, ranking first in the market. The wealth management business continued to expand into the Taiwan and Hong Kong markets, and revenue maintained strong growth. Trading businesses such as derivatives and stock options also flexibly grasped market opportunities and continued to contribute profit.

KGI Holdings stated that in addition to supporting the capital required for KGI Securities’ future business development, this capital increase also demonstrates the group’s strategic direction of continuing to optimize capital allocation and focus on high-growth and high-capital-efficiency businesses. Among the new shares issued through cash capital increase, 10% will be reserved for employees to subscribe, 10% will be handled through public subscription, and the remaining 80% will be subscribed first by original shareholders according to their shareholding ratio.