Scott Technology hopes to raise $9.5 million through a rights issue to pay back debt and fund further growth.
The Dunedin-based company, which designs and manufactures automated production and process machinery, has announced a one-for-four rights issue.
The shares are being offered at $1.20 each - a 17% discount to Friday's closing price.
Two months ago, Scott Technology paid $4.4 million for a 51% stake in the Wellington-based electro-magnetic maker HTS-110.
Scott Technology managing director Chris Hopkins says part of the proceeds from the rights issue will repay that and other debt, and leave the firm in a strong position to maximise opportunities.
Mr Hopkins says there are good opportunities for the company in making equipment for meat processing and for the mining industry with laboratory sampling.