Hong Kong-listed China Resources Power Holding said on Wednesday it was planning to raise HK$3.89 billion ($500.50 million) via share placement to repay its debt and for corporate management purposes.

The power plant operator will place 198.5 million shares, representing more than 4 percent of its total share capital, at a price of HK$19.70 per share.

The placing price is at a discount of 5.1 percent to the stock's last closing price of HK$20.75 on Oct 22.

In a separate deal, the company said it will issue 168.1 million shares to its controlling shareholder China Resources (Holdings) under a subscription agreement for HK$3.31 billion.

ALSO READ: Hong Kong unveils fast-track IPO process to boost listings

The placement, which is conditional on approval from listing committee among others, will enable the company to optimize its capital structure and support future growth, China Resources Power said.