By Yifan Wang

Geely Automobile Holdings Ltd. said it plans to issue up to 1.73 billion shares in a proposed Shanghai IPO that would fund research and development.

The company first disclosed its plans to offer new shares on the Shanghai stock exchange's technology-themed Star board earlier this month.

The proposed number of shares to be sold represents 15% of Geely's total issued share capital, it said late Wednesday.

The company said it plans to use approximately 40% of the IPO's proceeds for the research and development of new automobile products, and another 15% on R&D into emerging technologies such as new-energy vehicles and intelligent-driving.

It would use around 30% of the funding for working capital replenishment, and the remaining 15% for potential acquisitions.

Investors had welcomed Geely's plans. The company's shares rose sharply after it posted the plan on June 17. 



  Write to Yifan Wang at yifan.wang@wsj.com