Michelin announced it will issue 1.2 billion euros ($1.6 billion) worth of new shares to finance growth in emerging economies and strengthen its credit rating.

The move took investors by surprise, causing the tiremaker’s share price to fall by 8.1%.

The subscription price of the new shares was set at 45 euros, a 27% discount to the closing price Monday. Shareholders are entitled to two new shares for every 11 shares currently held. The subscription period for the new shares will run from Sept. 30 to Oct. 13.

Michelin also announced new earnings goals, saying it wants to achieve an operating income before non-recurring items of well over 2 billion euros by 2015 and to increase sales by 25% over the same period and by 50% until 2020.