Huicheng International (HKG:1146) said it agreed to issue 100 million shares to Zhang Kailun, the daughter of its chairman and chief executive Zhang Yongli, according to a Tuesday filing with the Hong Kong bourse.
The apparel maker's shares were up nearly 8% in recent trade.
The shares, which represent 2.82% of the company's enlarged share capital, will be issued at HK$0.10 each or HK$10 million in total.
Zhang and parties acting in concert with the subscriber held 48.48% of the company's issued share capital before the subscription. The sale will bump their ownership to 49.94% and the firm has applied with Hong Kong authorities for a waiver from making a takeover bid for the business.
The share sale will help replenish the company's cash resources in light of the continued underperformance of the business.