Shandong Molong Petroleum Machinery (HKG:0568, SHE:002490) agreed to place nearly 25.7 million new Hong Kong-listed shares to raise net proceeds of HK$115.7 million, according to a Tuesday Hong Kong bourse filing.

Shares of the energy equipment supplier were up nearly 5% in Wednesday afternoon trading.

The shares will be issued at HK$4.58 apiece to six or more investors.

The shares represent around 9.11% of the company's Hong Kong-listed shares and 3.12% of its total shares as enlarged by the placement.

The company will use proceeds to repay borrowings and for working capital and general corporate purposes.