Cosmopolitan International (HKG:0120) plans to raise about HK$10.3 million in net proceeds through a placement of up to 100 million new shares at HK$0.108 each, according to a Friday joint filing with parent Century City International (HKG:0355).

The placing price represents a 14.3% discount to Cosmopolitan's last closing price and an 18.6% discount to the five-day average.

The new shares will represent about 7.46% of the enlarged share capital.

Proceeds from the offering will be used to reduce group indebtedness.

As of the date of the announcement, Cosmopolitan is a non-wholly owned indirect subsidiary of Century City, which holds about 70.30% of its shares.

Upon completion of the placement, that stake will dilute to about 65.06%, constituting a deemed disposal, the filing said.