Printing firm Midas International plans to raise HK$110 million through a rights offering, it said in a filing with the Hong Kong stock exchange on Tuesday night.
The firm said it would issue one new share for every two existing ones at 10 HK cents. The offer price represents a discount of 47 per cent to Tuesday’s closing price of 18.8 HK cents.
Midas said about HK$78 million of the net proceeds would be used to acquire additional paper stock for future orders, repay existing suppliers and buy alternative materials from new suppliers. The remaining HK$29 million will go to refinance its yuan-denominated bank borrowings.
The firm said it planned to reduce its exposure to yuan borrowings that carried higher interest rates.
It repaid HK$113 million worth of convertible notes last month.