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Loss-making Hong Kong pay-TV provider I-Cable plans to raise HK$704m ($90.5m) in a sale of new shares at a 66 per cent discount to its last closing price after its parent said it would cease funding the company.

The offer is underwritten by a consortium lead by Far East Consortium chairman David Chiu, Chow Tai Fook Enterprises and its chairman Henry Cheng, and Li Sze Lim, chairman of Expand Ocean L.P. and Guangzhou R&F Properties.

Five shares will be offered for every three shares at HK$0.21 a share, I-Cable said in the filing to the Hong Kong stock exchange.

I-Cable’s shares had fallen 34 per cent since the beginning of March to April 18, when they were suspended ahead of the latest announcement. The drop came after I-Cable’s parent company Wharf Holdings said talks to sell the pay-TV provider had ended and that it would cease to fund the loss-making subsidiary.

I-Cable’s shares fell as much as 24.6 per cent in early trading before pulling back to be down 11.5 per cent at HK$0.54 a share.

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