Huasheng International (HKG:1323) agreed to place up to 151.1 million shares to raise net proceeds of HK$18.5 million, according to a Thursday Hong Kong bourse filing.
Shares of the concrete company were up nearly 19% in Friday afternoon trading.
The shares, representing 16.67% of the company's enlarged issued share capital, will be placed to at least six investors at HK$0.127 apiece.
The company will use proceeds for a capital contribution to a JV to be formed by unit Hainan Huasheng Concrete and Sanya Yucai Ecological Investment Development for a ready-mixed commercial concrete mixing plant project once a cooperation contract is signed.