Zhong An Intelligent Living Service (HKG:2271) plans to place up to 51.7 million new shares at HK$1.52 each under a general mandate, raising net proceeds of about HK$77.7 million, according to a Tuesday Hong Kong bourse filing.

The placing, to be conducted on a best-efforts basis to no fewer than six independent investors, represents about 10% of Zhong An Intelligent's existing issued share capital and 9.09% of the enlarged share capital upon completion.

The company said the net proceeds will be used for general working capital.

Following completion, Zhong An Group's (HKG:0672) indirect stake in Zhong An Intelligent will be diluted to about 64.80% from 71.28%.

Zhong An Intelligent will remain a non-wholly owned subsidiary and continue to be consolidated into Zhong An Group's financial statements, the filing said.

The placement is expected to broaden its shareholder base and enhance share liquidity, while introducing long-term institutional investors.