China-based Dongwu Cement said it agreed to place up to 40 million new shares at HK$1.3 apiece, representing a premium of about 3.17 per cent to the closing price of H$1.26.

The placing shares represent around 7.25 per cent of the enlarged issued share capital of Dongwu Cement.

The estimated net proceeds of about HK$51.3m will be used for acquiring 100 per cent equity interest in Shanghai Biofit Environmental Technology Co, Ltd and for general working capital of the group.