SF Holding (HKG:6936) said it plans to raise up to HK$5.9 billion in gross proceeds through a dual-tranche offering of new H-shares and zero-coupon convertible bonds, both under its general mandate, according to a Thursday Hong Kong bourse filing.

The company will place 70 million new H-shares at HK$42.15 each to raise about HK$2.95 billion. The placing price represents an 8.8% discount to the last closing price of HK$46.25.

Concurrently, it will issue HK$2.95 billion worth of convertible bonds, also at par, which may be converted into approximately 60.86 million H-shares at an initial conversion price of HK$48.47.

Net proceeds from both tranches, expected to total approximately HK$5.83 billion, will be used to support international and cross-border logistics expansion, R&D, capital structure optimization, and general corporate purposes.

If both the share placement and full bond conversion are completed, the resulting dilution would represent about 2.6% of the enlarged share capital.

Shares of SF Holdings were down about 4% in recent trade.