Sanergy Group (HKG:2459) agreed to place up to 228 million new shares at HK$0.083 each under its general mandate, raising about HK$18.4 million in net proceeds, according to a Monday Hong Kong bourse filing.

The shares will be placed with no fewer than six independent third-party investors, the company said.

The placing price represents a discount of about 17.8% to the stock's last closing price and about 19.7% to the average closing price over the previous five trading days.

The new shares represent about 13.3% of Sanergy's existing issued share capital and about 11.8% of the enlarged share capital following completion of the placing.

Sanergy said the net proceeds will be used for the development of its graphite electrodes business and for liquidity and general corporate purposes.