Bonjour (HKG:0653) is proposing a rights issue on the basis of three rights shares for every one existing share to raise around HK$107.5 million, an April 17 Hong Kong bourse filing said.

The beauty products company will issue a maximum of 1,343,147,397 rights shares at HK$0.080 apiece to qualifying shareholders.

Of this, around 675,291,879 rights shares will be issued to Chairman Chen Jianwen to set off an outstanding shareholder's loan and accrued interest of a little over HK$54 million.

After considering the offsetting agreement and the expenses related to the rights issue, the net proceeds raised by the company will amount to a maximum of HK$52 million.

The company will place the unsubscribed rights shares with investors. Chen will also be able to subscribe for up to 233,589,172 unsubscribed rights shares to retain his 50.28% stakeholding in the firm.

Chen holds 225,097,293, or 50.28% of the company's issued share capital as of April 17.

The rights issue and placing are subject to shareholder approval.