(Yicai Global) June 30 -- Shares of Inovance Technology surged after the Chinese automation equipment maker said it has secured CNY2.1 billion (USD330 million) in investment from 12 institutions, including Hillhouse Capital.

Inovance’s share price [SHE:300124] climbed as much as 7.9 percent to CNY74.40 (USD11.50) intraday, almost 30 percent higher than the discounted price offered to the group of 12 investors.

Citic Securities, J.P. Morgan Securities, Morgan Stanley, UBS, and AIA joined the private placement, the Shenzhen-based elevator control systems developer said in a statement yesterday.

Inovance is planning to use the proceeds from the issuance mainly to acquire the remaining 49 percent stake in subsidiary Inovance Control Technology. Moreover, it will spend some of the money on expanding its output of automation control equipment, and developing smart software. Some of it will go into boosting working capital.

The stock price jump shows how investors follow Hillhouse's moves closely. Earlier this month, the renowned private equity group said it will subscribe to HKD1 billion (USD130 million) worth of convertible bonds issued by Chinese sportswear brand Xtep International Holdings. Xtep's stock price surged more than 30 percent that day and has continued climbing after that.

The trend goes both ways. After the Asia-focused PE firm said in March that it intends to sell up to a 6 percent stake in Chinese snack retailer Bestore, the latter’s share price plunged almost by the daily limit. The shares have kept on sliding in the following months.

Before this, Hillhouse has invested early in tech firms Tencent Holdings, JD.Com, Meituan, Didi Chuxing, and electric vehicle maker Nio.

Editor: Emmi Laine, Xiao Yi