Major Chinese commercial vehicle maker Beiqi Foton Motor Co (600166.SS: Quote, Profile, Research) said on Wednesday it has raised 1.03 billion yuan ($151 million) from a share placement.

Foton issued 105 million shares to its parent, Beijing Automotive Industry Holding, and four other domestic firms at 9.88 yuan per share, it said in a statement.
The move increased Beijing Auto's stake in Foton to 37.71 percent from 36.43 percent and brought in major Chinese engine maker Weichai Power Co (000338.SZ: Quote, Profile, Research) (2338.HK: Quote, Profile, Research) as a strategic investor with a 2.18 percent stake.

Proceeds will be used to fund Foton's engine venture with Cummins Inc (CMI.N: Quote, Profile, Research) and upgrade its commercial vehicle production facilities, it added.

Foton's A shares traded on the Shanghai Stock exchange rose 1.66 percent to 7.33 yuan by mid-morning trade on Wednesday, outperforming a 1.24 drop in the benchmark index .SSEC.
In April, Foton reached a preliminary agreement to set up a truck-making joint venture with Daimler AG (DAIGn.DE: Quote, Profile, Research). The two parties will finalise the deal after the Beijing Olympics in August, Beijing Auto Chairman Xu Heyi told Reuters last month. ($1=6.821 Yuan)