Milan Station Holdings (HKG:1150) intends to increase its share capital to HK$400 million from HK$80 million and then execute a reverse stock split, according to a Wednesday filing with the bourse.

The luxury retailer said the capital increase will boost its issued shares to 10 billion from 2 billion. Therefore, it plans to conduct a 5-to-1 reverse stock split to bring issued shares back to 2 billion. The minimum lot size for trading in the company's shares has also been lowered from 10,000 to 5,000.

Additionally, Milan Station plans to offer 211.4 million rights shares to eligible shareholders at HK$0.36 apiece to raise HK$76.1 million. The company will sell any unsold shares from the rights offering in a private placement.

Shares were up 51% ahead of midday on Thursday.