Synertone Communication (HKG:1613) said it was looking to raise HK$121.2 million via a rights offering, according to a Hong Kong bourse filing Wednesday.

Shares of the digital trunking firm fell over 5% in morning trade Thursday.

The company is offering 897,482,880 rights shares at HK$0.135 apiece on the basis of 2 shares for every one held in the company.

The shares represent 200% of the company's issued share capital, and 66.67% as enlarged by the offering.

The issue is subject to shareholder approval.

Unsubscribed shares will be offered to new investors under a placing agreement with Waton Securities International, Synertone said.