Perfectech International (HKG:0765) will raise estimated net proceeds of about HK$46.7 million through a non-underwritten rights issue based on one rights share for every two existing shares at HK$0.295 apiece, according to a Friday Hong Kong bourse filing.

Shares of the firm were up 12% in Monday afternoon trade.

The issue involves up to around 163.5 million rights shares, representing about 50% of existing capital and 33.3% of enlarged share capital.

The subscription price reflects a nearly 18.1% discount to the last closing price of HK$0.360.

Perfectech expects net proceeds to fund its large AI model business, covering R&D, cloud computing, promotion, and IT upgrades. The remaining will be used for working capital.