-- Citychamp Watch & Jewellery Group (HKG:0256) plans to raise up to HK$145.1 million via a rights offering, according to a Hong Kong bourse filing Tuesday.
The luxury watch and jewelry maker's shares jumped 16% in morning trade Wednesday.
The firm will offer one rights share priced at HK$0.1 apiece for every three shares held in the company.
All in all, qualifying shareholders will be able to subscribe to a pool of 1.45 billion rights shares, and any unsold shares will be offered to the public.
The shares represent 33.3% of the company's issued share capital and 25% as enlarged by the transaction.
The bulk of the proceeds from the offering will be used to repay the company's borrowings.