Phancy Group (HKG:6682) seeks to raise HK$1.57 billion via a stock offering, according to a Hong Kong bourse filing Wednesday.

Shares of the company fell nearly 11% in morning trade Wednesday.

The firm is seeking investors for 38.8 million shares at HK$40.36 apiece to raise funds to support the company's ongoing business development needs, including the purchase of GPUs for artificial intelligence computing power.

The shares represent 12.09% of the firm's H shares and 7.47% of its issued shares, and 10.79% and 6.95% as enlarged by the sale, respectively.