Shares of Hualing Holdings dived 30 per cent yesterday after the loss-making refrigerator and air-conditioner maker announced a rights issue at a steep discount. Hualing shares fell 6.9 cents to 16.1 cents apiece after it said it would raise $238 million through the share issue. The mainland company plans to sell 2.38 billion rights shares to shareholders, including parent Midea International Corp. Shareholders will receive three shares for every two existing ones at 10 cents apiece. This represents a 56.5 per cent discount to the last traded price on May 12. Citing a net loss of $629 million, Hualing said it priced the issue at a rate that would make it attractive. It needed funds after using up $703 million of its total banking facilities of $770 million, it said. The company said alternative ways of raising funds would be difficult and costly. 'The directors intend to use the net proceeds ... as general working capital to allow the group to restore [itself] to a net asset position,' Hualing said in a statement to the exchange.