China MeiDong Auto (HKG:1268) agreed to invest $20 million as a cornerstone investor in the Hong Kong initial public offering of Seres Group (HKG:9927, SHA:601127), according to a Monday bourse filing.

Shares of the firm were up more than 2% in Tuesday afternoon trade.

The investment will be funded through internal resources, bank borrowings, and/or shareholder loans.

The subscribed shares will be subject to a six-month lock-up following Seres' listing, the filing said.

Seres Group launched its initial public offering in Hong Kong on Monday, seeking to raise up to HK$13.2 billion.