Hang Yick (HKG:1894) has proposed a capital reorganization and fundraising plan comprising a 20-for-1 share consolidation, an increase in authorised share capital, and a non-underwritten rights issue, according to a Thursday Hong Kong bourse filing.

Shares of the steel and metal engineering firm were down nearly 19% in Friday morning trade.

The company plans to consolidate every 20 shares into one, reducing its issued share count from 921.1 million to about 46.1 million consolidated shares, the filing said.

It also intends to double its authorised share capital to HK$76 million.

Hang Yick aims to raise about HK$84.7 million in gross proceeds through a rights issue of up to 184.2 million rights shares on a four-for-one basis at HK$0.46 each.

Estimated net proceeds of HK$82 million will be allocated to project costs through 2027, debt repayment by 2026, and the remainder for working capital.