China Strategic Technology Group (HKG:1725) plans to raise up to HK$48.6 million in net proceeds through a placement of new shares, according to a Tuesday Hong Kong bourse filing.
The company will issue up to 163.7 million new shares to at least six subscribers at HK$0.300 apiece, a 9.09% discount to the last closing price of HK$0.330.
The shares represent 20% of the company's existing issued share capital.
Net proceeds will be used to invest about HK$20 million in expanding its precision manufacturing business, with the remainder allocated to general working capital.
Shares of the commercial aerospace company were down nearly 5% in Wednesday morning trade.