Luxury watch distributor Hengdeli Holdings Ltd is selling HK$1.04 billion ($181 million) worth of new shares, raising capital to fund network expansion in China and in the region, according to a term sheet obtained by Reuters on Wednesday.

Hengdeli was selling 300 million new shares, representing 7.37 percent of its enlarged share capital, at HK$3.48 each.

The proceeds would also be used for general working capital, the term sheet showed.

Kingston Securities is the bookrunner of the placement.

Hegdeli shares were suspended on Wednesday pending a statement regarding price-sensitive information.

The stock ended trading at HK$3.87 on Tuesday.