BWI INT'L (02339) has seen its stock price continue to rise sharply, with cumulative gains exceeding 140% month-to-date. At press time, shares were up 13.94% to HK$1.88, with turnover reaching HK$22.27 million.

The company recently announced plans to raise approximately HK$710.4 million net through a share placement and convertible bond issuance. The fundraising includes a 34% discounted placement of 430 million shares to four subscribers including its controlling shareholder, along with HK$409 million in convertible bonds issued to the controlling shareholder.

Proceeds will be allocated as follows: 40% for new production lines and upgrades at its Poland plant; 30% for working capital at the Poland facility; 25% for working capital at technology centers in Poland, Italy and France; and 5% for headquarters operations in Hong Kong.

BWI INT'L stated the capital raise addresses challenges from the automotive market's robust growth and complexities in transitioning to pure electric vehicles. The company faces diversified demand for ICE, hybrid and EV components, surging operational/R&D costs, and increased working capital and talent needs. The investment aims to strengthen its competitiveness in premium passenger vehicle components and accelerate global expansion.