Add New Energy Investment (HKG:2623) plans to offer one rights share for every two existing shares at a subscription price of HK$2.88 per share, according to a Thursday Hong Kong bourse filing.

Shares of the iron and ilmenite ore company were down nearly 4% in Friday morning trade.

The company will issue up to 175.1 million rights shares, assuming full subscription and no change in the share base before the record date.

The subscription price represents a discount of about 37.7% to the last closing price and about 34.8% to the five-day average price, the filing said.

Net proceeds of about HK$503.4 million will be used for acquisitions and investments, as well as to supplement working capital.