Ta Yang (HKG:1991) said it plans to raise up to about HK$274.5 million in net proceeds through a non-underwritten rights issue based on two rights shares for every one new share held at HK$0.80 each, according to a Thursday Hong Kong bourse filing.

The company will first implement a capital reorganisation that reduces the par value of each share to HK$0.10 from HK$1.00.

Assuming no change in the share capital, Ta Yang will issue up to 344.0 million rights shares, representing 200% of its existing issued share capital and about 66.7% of the enlarged share base.

The subscription price represents discounts of about 2.4% to the last closing price and 4.5% to the five-day average price, the filing showed.

Net proceeds will be used mainly for AI digital human technology development, including computing infrastructure, data training, and staff investment, with the remainder for working capital and debt repayment.