(Yicai Global) June 18 -- Shares of Geely Automobile Holdings jumped after the Chinese automaker said that it is looking to issue new stock on Shanghai's one-year-old Star Market to boost its coffers to develop new technologies.

Geely's shares [HKG:0175] closed up 5.9 percent today at HKD12.60 (USD1.63) each, after touching HKD12.80 this morning, the highest since late last month. The company, whose parent is Hangzhou-based Zhejiang Geely Holding Group, joined the Hong Kong stock market in 2004.

Geely’s board approved the proposed issuance which would amount to no more than 15 percent of the company’s total outstanding shares, it said in a statement yesterday. The company will provide the Hong Kong and Shanghai bourses with more details after securing regulatory approval, it added.

Besides its eponymous brand, Geely owns marques such as Volvo, Lynk & Co., and Black Taxi, while holding stakes in Malaysia's Proton Holdings and the UK’s Lotus Cars.

Shanghai's Star Market is a Nasdaq-style tech board that has already attracted more than 100 companies. By June 5, most of them had seen their stock prices nearly triple on average since they debuted, according to data from the country's securities regulator.

A mainland listing would diversify Geely's financing methods while enhancing its positioning in the fields of electrification, intelligence, networking, and automation, the firm added.

Last year, Geely made CNY8.3 billion (USD1.2 billion) in net profit. Revenue was CNY97.4 billion (USD13.8 billion). In May, its car sales rose 20 percent to more than 108,800 from a year earlier as the firm recovered from the Covid-19 virus impact.

Editor: Emmi Laine