Zhejiang FORE Intelligent Technology (SHE:301368) plans to raise up to 730 million yuan from share placement plan, according to a Shenzhen bourse filing on Thursday.
The company plans to issue up to around 36 million shares to up to 35 investors.
Proceeds from the placement will be used to fund the construction of a factory for precision power gears for new energy vehicles, a precision transmission manufacturing plant, and a precision transmission research and development center.
The remaining proceeds of up to 200 million yuan will be used to supplement the company's working capital.
The Chinese gear manufacturer's shares fell 2% during the midday trade.