TOMO (HKG:6928) said it was eyeing up to HK$40 million via a 1-for-2 rights offering, according to a Monday Hong Kong bourse filing.

Shares of the auto parts seller fell nearly 31% in recent Tuesday trade.

The company plans to issue up to 225 million rights shares to eligible shareholders at HK$0.18 each to raise the funds. The shares would represent 33% of the company's enlarged share capital.

Funds raised will primarily be used to upgrade and expand the company's various business lines.

Get Nice Securities will oversee the offering on the company's behalf.