Risecomm Group (HKG:1679) said it has raised about HK$80.4 million in net proceeds from its rights issue, according to a Tuesday Hong Kong bourse filing.

Shares of the software services provider were down nearly 9% in Wednesday morning trade.

The company issued 164.7 million rights shares, or about 64% of the total offered, after placing 81.96 million unsubscribed shares at HK$0.50 each, the same as the subscription price, to ten independent investors.

Risecomm said the proceeds will be used primarily to repay current liabilities and for working capital, including staff costs, rent, and business development spending related to its smart manufacturing and industrial automation businesses.

Following completion, the new placees collectively hold around 38% of the enlarged share capital.

Trading in the fully paid rights shares will commence on Oct. 23 on the Hong Kong Stock Exchange.