By P.R. Venkat

China Merchants Securities Co. said it's planning to raise 14.91 billion yuan ($2.12 billion) in net proceeds through a rights issue on the Hong Kong and Shanghai stock exchanges.

The company is planning to issue a total of 294.12 million H-shares and another 1.72 billion A-shares in the rights offering, it said Tuesday.

The firm will issue three new H- and A-shares for every 10 existing shares at an issue price of 8.185 Hong Kong Dollars ($1.06) and CNY7.46 each respectively.

China Merchant Securities said that the proceeds will be used to strengthen its balance sheet and develop its business as China deepens its capital markets.

Write to P.R. Venkat at venkat.pr@wsj.com