Daido (HKG:0544) will issue an aggregate 58,022,079 shares to three investors under a subscription scheme, according to a Monday filing with the Hong Kong bourse.

The warehouse, logistics, and trading company will issue 19,340,693 shares each to YuYu Future Investment, Bi Wei, and Providence Capital at HK$0.04801 apiece.

The subscription shares constitute 16.67% of the entire shareholding of Daido as enlarged by the allotment and issue, the filing said.

Net proceeds of the issuance, set at HK$2.52 million, will be used to repay debt and fund working capital.

Daido will then issue HK$45 million in aggregate convertible bonds, or HK$15 million each, to YuYu Future Investment, Protoss Global Opportunities Fund, and Providence Discovery Fund.

The conversion price is HK$0.04801 per conversion share with an interest rate of 6% per annum.

Based on the price, up to 937,304,727 conversion shares could be issued upon conversion of the bonds, the filing said.

Shares surged 77% during Tuesday's afternoon trading.