XXF (HKG:2473) plans to raise about HK$151 million in net proceeds through a share placing and top-up subscription, according to a Monday Hong Kong bourse filing.

Shares of the automobile services company were down nearly 8% in Tuesday morning trade.

An existing shareholder, Glorypearl Capital Resources, will place 154.7 million shares at HK$0.98 each to at least six investors on a best-efforts basis.

The placing represents about 10% of the company's existing issued share capital.

XXF will issue the same number of new shares to the seller under a top-up subscription at the same price.

Net proceeds will be used for vehicle procurement to support its automobile retail and leasing businesses, as well as general working capital.