Consumer electronic and toy products manufacturer Chun Tai Holdings is to raise about $49 million through the placement of 32.8 million new shares to a Hong Kong investment company backed by a series of provincial governments on the mainland. Chun Tai said it would place the shares at $1.50 each - a discount of about 17.58 per cent on yesterday's closing price of $1.82 - to Golden Sino (Holdings). Golden Sino is backed by China Trust & Investment Corp for Economic Development, Jiangxi Provincial Finance Corp, Fujian Hua Xing Trust & Investment Co, Zhejiang Provincial Finance Corp, Anhui Trust & Investment Corp and Yunnan International Trust & Investment Corp. The proceeds will be used to furnish factory premises and buy new equipment. The new shares represent 10 per cent of issued capital and 9.09 per cent of capital enlarged by the placement. After the share placing, chairman Ricky Chung's beneficial interest in Chun Tai will fall from 59.55 per cent to 54.14 per cent. Mr Chung defended the dilution, saying the new funds would help fuel the company's growth.