Inner Mongolian Baotou Steel Union Co a Chinese steelmaker, will raise as much as CNY 29.8 billion (USD 4.9 billion) in a private share placement to buy assets from its parent and replenish working capital. The stock jumped.

The company said in a statement that the board approved a plan to sell as many as 8.26 billion shares in Shanghai at CNY 3.61. That compares to the CNY 3.92 the stock last traded at on October 31.

The shares will be issued to seven investors, including state-owned Baogang Group, the company’s parent, Baotou Steel said. Guohua Life Insurance Co and Huaan Asset Management (Hong Kong) Ltd will also buy shares in the placement.