-- Digital China (HKG:0861) said its unit Digital China Information Service (SHE:000555) plans to raise up to 1 billion yuan through a private placement of new shares, according to a Monday Hong Kong bourse filing.
Shares of the Chinese IT company were down nearly 4% in Tuesday's midday trade.
Digital China Information intends to issue up to about 195.2 million shares, representing 20% of its existing share capital, to no more than 35 investors.
The final issue size and price will be determined through book-building, subject to regulatory approvals.
Assuming full issuance, Digital China's stake in the unit would be diluted by about 6.4% to roughly 32.2%, the filing said.
The proceeds are intended for investment in AI technologies, the establishment of an East China business base, and working capital.