Red-chip China Resources Logic took advantage of the Hong Kong stock market's upturn to tap at least HK$160 million through a share placement yesterday.
The company said its parent, China Resources (Holdings), sold 290 million old shares at 94 HK cents to investors and subscribed 170 million new shares issued by Logic at the same price.
The sale price represented a 6.9 per cent discount to the last traded price of HK$1.01 before the stock was suspended from trading yesterday afternoon.
The company said the capital raised would be used to expand its semiconductor business in the mainland.
Executive director Ken Ong said the placement had a greenshoe option and the company would raise up to about HK$197 million if it were exercised.
Mr Ong said the placement was aimed at enlarging the company's shareholding base.
With a larger shareholding base, China Resources (Holdings) could convert the HK$851 million convertible bonds issued by the company into ordinary shares without breaching listing rules.