ETF News

China's Geely Automobile launches share placement of up to $859 mln

HONG KONG/BEIJING, May 28 (Reuters) - China’s Geely Automobile Holdings Ltd has launched an$836 million-$859 million placement of 600 million new shares, according to a term sheet seen by Reuters.

The shares are priced in the HK$10.80-$11.20 range, after 4.44%-7.85% discount to the last closing price of HK$11.72. There is a 90-day lock-up on the company, the term sheet showed.

Geely declined to comment.

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 Co Ltd’s 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. (Reporting by Scott Murdoch, Julie Zhu and Yilei Sun)