Many Idea Cloud (HKG:6696) said it was looking to raise HK$273.8 million via a rights offering, according to a Hong Kong bourse filing Thursday.

Shares of the marketing firm gained over 3% in morning trade Friday.

The company will offer eligible shareholders the option to buy 6 new shares for every 1 held in the company at HK$0.4753 apiece.

If fully subscribed, the company will issue 576 million new shares representing 600% of its issued share capital, and 85.7% on an enlarged basis.

Any shares not subscribed will be offered to the public, the company said.

Funds raised will be used to develop and enhance the company's artificial intelligence capabilities, Many Idea said. The rights issue is also "critical" to replenish the company's working capital and business development, the firm added.

Many Idea said it will call a meeting of shareholders to approve the rights offering and subsequent public offering.