By P.R. Venkat

Geely Automobile Holdings Ltd. is planning to raise 6.45 billion Hong Kong dollars (US$831.61 million) in net proceeds through private placement of shares.

The company is planning to sell 600 million shares of 6.51% of the stake of the company to select institutions and investors, Geely said Friday.

Each share will be sold for HK$10.80, which is a 7.85% discount to Thursday's closing price of HK$11.72 a share.

Proceeds from the placement will be used to expand business and meet working capital needs, the company said.

Bank of America Securities, Morgan Stanley, Goldman Sachs are among the banks advising Geely on the share placement.

Geely said the placing represents an opportunity to raise capital for the company in the face of meeting dynamic challenges with uncertainties in the foreseeable future.

"The directors are of the view that the placing would strengthen the financial position of the group and provide working capital to the group," Geely said. 



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