Changan Automobile (000625.SZ), a Chinese partner of Ford Motor (F.N), raised 3.5 billion yuan ($530 million) in a share offering after cutting the size of the deal by about 12 percent, the Chinese auto maker said on Friday.

Changan Auto, China's eighth biggest auto maker by market capitalisation, sold 360 million shares at 9.74 yuan a share in the sale, it said in a filing with the Shenzhen Stock Exchange.

The company had previously said it aimed to sell up to 411 million shares in the offering to raise up to 4 billion yuan.

The downsized deal came after Changan Auto's share price fell sharply following its Jan. 7 announcement of the share sale.

Changan Auto, which competes with bigger rivals including SAIC Motor (600104.SS) and Dongfeng Group (0489.HK) in the world's biggest auto market, said it would use the proceeds from the share offering to expand production, upgrade technology and fund research. ($1=6.6025 yuan)

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