Shanghai Refire (HKG:2570) said it has agreed to place 4.54 million new H shares at HK$58.38 each under its general mandate, raising about HK$258.4 million in net proceeds, according to a Sunday Hong Kong bourse filing.

Shares of the hydrogen fuel cell systems maker were down nearly 13% in Monday morning trade.

The shares will be placed on a best-efforts basis by Macquarie Capital to at least six independent professional or institutional investors, the company said.

The placing price represents a discount of about 18% to the H-share closing price on Jan. 16 and a discount of about 14.7% to the average closing price over the previous five trading days.

Refire said the net proceeds will be used roughly equally to repay bank loans and lease liabilities and for general corporate purposes.