The Hong Kong-listed company is raising net proceeds of about $7 billion by issuing stock and a further $2.97 billion by selling convertible bonds, it said Tuesday.

The huge capital-raising is considerably bigger than the $4.2 billion Meituan raised in its 2018 initial public offering and suggests there is still a healthy appetite among investors for stock in Chinese technology companies, even though shares in Meituan and many peers have pulled back recently.

Earlier this month,

Prosus

NV raised $14.6 billion by selling down a small part of its stake in

Tencent Holdings Ltd.

, the internet and videogaming giant.

Meituan said it plans to use some of the net proceeds on projects such as researching and developing autonomous delivery vehicles, drone deliveries and other cutting-edge technology.

In a separate statement Monday, the company unveiled a new generation of self-driving delivery cars that it said were smarter and safer than previous versions, with a longer battery life and capable of carrying heavier loads. Meituan says it has been working on this technology for five years and began making deliveries in a district of Beijing last year. It plans to roll out the service to other Chinese cities within three years.

The company raised about $6.6 billion by selling shares to institutional investors. Tencent, a major shareholder in Meituan, has pledged to buy $400 million of stock subject to approval from independent shareholders. After the share sales, Tencent and its associates will own about 17.2% of Meituan.

Meituan will also issue two sets of zero-coupon convertible bonds with a combined face value of $2.98 billion, due in 2027 and 2028.

Meituan set the offer price at 273.80 Hong Kong dollars a share, the equivalent of $35.27 and representing a discount of 5.3% compared to Monday’s closing price. That was close to the upper end of an indicative price range of HK$265 to HK$274, as shown by a term sheet on Monday.

Meituan’s shares rose 1.2% to HK$292.60 a share in early trading on Tuesday.

Meituan had an operating loss of 2.9 billion yuan, equivalent to $445 million, in the fourth quarter, compared with an operating profit of 1.4 billion yuan a year ago. While revenue for the quarter rose nearly 35% to 37.9 billion yuan year on year, Meituan said it had made significant investments in new initiatives and warned investors it could continue to record operating losses in the next few quarters as it ramps up its group-buying business.

Meituan and rivals such as

Pinduoduo Inc.

are jostling for market share in group buying, a fast-growing form of e-commerce in China in which people join together to buy groceries in bulk at better prices.

Meituan’s stock rose to records in February. But the stock has since fallen about 36% amid a broader selloff in Chinese technology stocks that has been driven partly by concerns about a tougher regulatory environment.

Write to Joanne Chiu at joanne.chiu@wsj.com