Liaoning SG Automotive Group (600303) plans to issue up to 235.48 million shares to 10 designated investors at not less than 6.37 yuan per share in order to raise a maximum of 1.5 billion yuan, reports Netease Finance, citing a company filing.

According to SG Automotive, controlling shareholder Liaoning SG Group will spend between 225 million yuan and 310 million yuan to subscribe to the private placement, and the shares have a lockup period of 12 months.

Funds raised will be used to invest in the construction of high-end light axles, heavy-duty axles, and to build a research and development center for axle technologies. The remaining proceeds will be used for loan repayments and to replenish working capital.