TELECOMMUNICATIONS company S. Megga International is to raise about $134 million by placing 66 million shares at $2.075 a share.

Proceeds will be used to fund working capital requirements of the company's China joint venture with US telecoms giant AT & T.

The placement is being done on the usual joint subscription and issue basis and will result in the holding of chairman Leung Ray-man and substantial shareholder Fook Man Development falling to about 52.6 per cent from their current 58.1 per cent.