Shares of LC LOGISTICS (02490) have surged more than 20%. As of writing, the stock is up 20.1% to HK$4.78, with a turnover of HK$10.32 million.

The significant move follows the company's announcement this morning of a plan to place 42.1536 million new shares at HK$3.3 per share. These shares represent approximately 6.86% of the company's enlarged issued share capital following the placement.

The gross proceeds from the share placement are expected to be around HK$139 million, with net proceeds estimated at approximately HK$137 million. The placement price represents a discount of about 17.09% to the closing price of HK$3.98 per share on the date of the placement agreement.

The company intends to use the net proceeds in the following manner: roughly HK$123 million is earmarked for potential strategic acquisitions, with a focus on high-quality targets possessing regional resources or advantages in specific market segments. The remaining balance of about HK$13.75 million will be allocated for general working capital purposes.