BEIJING — Geely Automobile Holdings raised $836 million from a share placement as the Chinese automaker looks to replenish coffers to finance growth in the world’s largest auto market.
Hong Kong-based Geely has sold 600 million primary shares at the bottom of the $1.39-$1.44 price range, or at a 7.85 percent discount to the last closing price of HK$11.72, according to a release.
The offering represents about 6.1 percent of its enlarged share capital, and the company plans to use the proceeds to support business development and general growth.
The share placement comes after China’s economy contracted 6.8 percent in the first quarter, as the country reels from an epidemic that started in the central city of Wuhan.
Geely Automobile, based in the eastern province of Zhejiang, is China’s most globally high-profile automaker following investments by parent company Zhejiang Geely Holding Group in European manufacturers Volvo Car and Daimler AG.
Geely Automobile and Volvo – which Geely’s parent bought from Ford Motor Co. in 2010 – are planning to merge and list in Hong Kong and possibly Stockholm.
Geely’s stock dropped nearly 10 percent to HK$10.6 on Friday.