Geely Automobile Holdings stated on Friday it raised HK$6.48 billion ($836 million) from a share placement as the Chinese automaker looks to refill its coffers to finance growth in the country.
Hong Kong-based Geely has sold 600 million major shares at the bottom of the HK$10.80-HK$11.20 ($1.39-$1.44) price range, or at a 7.85% discount to the last closing price of HK$11.72, the release showed.
The offering accounts for 6.1% of its enlarged share capital, and the company prepares to use the proceeds to support its business development and general growth.
Its share placement comes after the country’s economy suffered a 6.8% contraction in the first quarter, as the country stemmed from the coronavirus which started in the central city of Wuhan.
Geely Automobile, based in the eastern province of Zhejiang, is the country’s most globally high-profile automaker after investments by parent company Zhejiang Geely Holding Group in European manufacturers Volvo Car and Daimler.
Geely Automobile and Volvo – which Geely’s parent bought from Ford Motor 2010 – are preparing to merge and list in Hong Kong and possibly Stockholm, Sweden.
Geely’s stock dropped almost 10% to HK$10.6 on Friday.
Bank of America, Goldman Sachs, HSBC, Morgan Stanley and UBS were the bookrunners for the transaction.
