KPM Holding Limited (“KPM”) has released a prospectus detailing a non-underwritten rights issue aimed at strengthening its capital base and funding business expansion.

Key Terms • Basis: Two rights shares for every one existing share held on the record date (2 September 2026). • Issue Size: Up to 473.60 million new shares. • Subscription Price: HK$0.10 per rights share, a 13.8 % discount to the last trading day close of HK$0.116. • Gross Proceeds: Up to HK$47.40 million; estimated net proceeds of HK$45.60 million after expenses of about HK$1.80 million. • Timetable: Nil-paid rights trade 7–14 September 2026; final acceptance and payment deadline 17 September 2026; listing of fully-paid rights shares expected on 15 October 2026. • Underwriting: Offer proceeds on a non-underwritten basis. Unsubscribed or excluded portions will be placed to independent investors; any shares not placed will be cancelled, reducing the final issue size.

Use of Net Proceeds 1. HK$18.00 million – expansion and operations of the signage division, including machinery upgrades and project tenders, to be utilised by end-2027. 2. HK$18.00 million – expansion of fitting-out and renovation services, mainly for upfront project costs and workforce enhancement, also to be utilised by end-2027. 3. HK$9.60 million – general working capital, expected to be fully deployed within 12 months of completion.

Strategic Rationale KPM cites improved FY2025 performance—revenue up 20 % year-on-year to S$19.10 million and a profit of S$1.30 million—as support for expansion. Management views the rights issue as the most feasible funding route after exploring bank loans and placements, noting that debt financing would raise gearing while placements would dilute existing shareholders without offering participation rights.

Dilution Impact If fully subscribed, the company’s share count will rise from 236.80 million to 710.40 million, representing 66.7 % dilution for shareholders who do not participate. The theoretical dilution effect under GEM Listing Rule 10.44A is estimated at 11.1 %.

Conditions and Risks The rights issue is contingent on shareholder approval, regulatory clearance, and successful completion of placing arrangements for any unsubscribed shares. The directors highlight business concentration in project-based contracts, reliance on subcontractors, regulatory compliance risks, and macro-economic conditions as key operational uncertainties.

Financial Position As at 31 December 2025, KPM reported net assets of S$11.20 million and cash of approximately S$2.50 million. Pro-forma net tangible assets post-issue would rise to S$18.75 million, equivalent to HK$113.56 million.

Important Dates (all 2026, Hong Kong time) • Prospectus dispatch: 3 September • Nil-paid trading period: 7–14 September • Latest acceptance/payment: 17 September • Results announcement: 13 October • Trading of fully-paid rights shares: 15 October

Shareholders are reminded that dealings in nil-paid rights carry the risk that the rights issue may not proceed if conditions are not met.