Geely Automobile Holdings (0175.HK) said on Wednesday it would sell HK$769.5 million ($98.7 million) worth of new shares to its controlling shareholder, raising capital to fund acquisitions and for working capital.

The Chinese carmaker said it would sell 570 million new shares at HK$1.35 each to Proper Glory Holding Inc after the controlling shareholder completed sales of 800 million existing Geely shares at the same price to third-party investors.

The placing price represented a 6.9 percent discount to the closing price of HK$1.45 on Tuesday. The placing will be completed on May 22.

Proper Glory's stake in Geely will be reduced to 50.04 percent from 57.98 percent on completion of the deal.

JP Morgan (JPM.N) and Macquarie Group (MQG.AX) are the placing agents.

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Geely shares rose 4.3 percent on Tuesday.