Geely Automobile Holdings and its chairman intend to raise as much as US$141.9 million through a share placement, as the automaker’s stock has rallied in May, the South China Morning Post reported. Hong Kong-listed Geely on Tuesday offered to sell 570 million new shares at US$0.17 to 0.18 each, representing up to an 8% discount. Geely’s chairman, Li Shufu, will sell 230 million existing shares, representing a 3.3% stake, at the same price for US$40.9 million. Geely’s shares have risen by 38% during the over the past 12 days compared to a 12% increase for the benchmark Hang Seng Index. Geely will use part of the proceeds to fund its US$43.8 million purchase of Australian car parts maker Drivetrain Systems International. The funding could also be used for further acquisitions, sources told the paper.
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