PATEO (02889) has announced a share placement agreement entered into with its placing agent on September 8, 2026 (before trading hours), under which the placing agent has conditionally and severally agreed to act as the company's placing agent to use best efforts to procure no fewer than six (6) placees to subscribe for up to 4.889 million new H shares at a placing price of HK$120.28 per share.

The placing price of HK$120.28 per share represents: (i) a discount of approximately 14.39% to the closing price of HK$140.50 per share quoted on the Hong Kong Stock Exchange on September 7, 2026 (being the last trading day and the date of price determination); and (ii) a discount of approximately 19.99% to the average closing price of approximately HK$150.34 per share quoted on the Hong Kong Stock Exchange over the five (5) consecutive trading days immediately preceding the last trading day (excluding that day).

The number of placing shares accounts for (i) approximately 5.90% of the company's existing issued H shares as of the date of this announcement; and (ii) approximately 5.57% of the company's enlarged issued H shares after the allotment and issuance of the placing shares (assuming no changes to the company's issued H shares from the date of this announcement to the completion date of the placement, other than the allotment and issuance of the placing shares).

The total gross proceeds from the placement are expected to be approximately HK$588 million. The net proceeds from the placement are expected to be approximately HK$578 million (after deducting relevant fees and expenses of the placement). On this basis, the net price per placing share is approximately HK$118.30.