Consumer electronics maker TCL Corp said its board has approved a proposal to reduce the target size of the funds to be raised from a planned private placement to 1.696 billion yuan ($229.5 million), compared with 2.296 billion yuan previously.

In a statement filed to the Shenzhen bourse, the company said that it made the reduction based on a scale-back in investment in a subsidiary, lowering its working capital needs. In addition, chairman Li Dongsheng will buy 18 percent of the new shares to be issued as a strategic investor.

According to the previous plan announced in June, up to 650 million yuan of the proceeds were to be used to boost the company's stake in TCL Multimedia Technology Holdings, while another 250 million yuan was to be used to supplement working capital.

Under the revised plan, TCL said that it will issue 200-380 million additional A-shares, down from the previous 600 million, to a maximum of 10 institutional investors.

Up to 742.46 million yuan of the proceeds will be invested in the production of small and medium-sized liquid crystal display (LCD) panels, and up to 653.91 million yuan will be invested in the output of large, high-definition LCD panels.

The remainder will be injected in a Hong Kong-based subsidiary.