Kwan On (HKG:1559) has planned a non-underwritten rights issue on a one-for-two basis at a subscription price of HK$0.07 per share, according to a Monday Hong Kong bourse filing.

Shares of the civil engineering firm were up nearly 4% in Tuesday's late morning trade.

Net proceeds are expected to be up to about HK$63.6 million, the filing showed.

The company said net proceeds will be used primarily to repay group liabilities, fund development of existing construction projects, and for general working capital.