Shandong Molong Petroleum Machinery (HKG:0568, SHE:002490) plans to place 33.6 million new H-shares at HK$3.50 each, raising net proceeds of about HK$114.9 million, according to a Wednesday filing with the Hong Kong bourse.

The placing price represents a 16.17% discount to the Sept. 23 closing price of HK$4.175 and a 19.91% discount to the five-day average closing price of HK$4.37.

The new H shares will account for 11.93% of the company's existing H-shares and 4.08% of its total issued shares.

The company plans to use net proceeds to repay borrowings, settle operating payables, including those for raw-material procurement, and allocate the remainder to working capital and general corporate purposes.

Hong Kong-listed shares of the firm were down more than 1% in Thursday morning trading.