Major Chinese truck maker Beiqi Foton Motor Co 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 as a strategic investor with a 2.18 percent stake.

Proceeds will be used to fund Foton's engine venture with Cummins Inc 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. The two parties will finalize the deal after the Beijing Olympics in August, Beijing Auto Chairman Xu Heyi told Reuters last month.

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