November 16 -- Inner Monngolia Yili Industrial Group (600887.SH) reduced the scale of its private placement, and will now plan to raise a maximum of five billion yuan through the issue of up to 310 million shares at a minimum price of 16.34 yuan per share, reports yicai.com, citing a company filing.

Controlling shareholder Huhhot Investment will subscribe to 10 percent of the shares issued in the private placement.

The company had previously planned to raise up to seven billion yaun by issuing no more than 218 million shares to 10 designated shareholders at a minimum price of 32.67 yuan per share.

Funds raised will be used to expand production capacity and to supplement working capital.