Kafelaku Coffee (HKG:1869) said it was looking to raise HK$21.4 million via a stock offering, according to a Tuesday filing with the hong Kong bourse.

The company is seeking buyers for around 282.1 million shares priced at HK$0.076 each to raise funds to repay debt and reduce liabilities.

The shares represent 20% of the company's issued share capital and 16.7% as enlarged by the offering.

Shares of the coffee chain operator surged 34% in recent trade.