* Hella seeks listing on Frankfurt Stock Exchange
* Shares to start trading on Nov. 11
* Places 11.1 mln shares in capital increase
* Family shareholders to sell stock in separate move
* Family to retain 85 pct of Hella in short run (Adds plans for additional placement, further details)
By Edward Taylor
FRANKFURT, Oct 31 (Reuters) - Family-owned Hella, a German manufacturer of auto headlights and electronics parts, said on Friday it would raise 278 million euros ($349.4 million) in a stock market flotation to fund international expansion and innovation.
Hella has placed about 11.1 million shares with institutional investors at 25.00 euros apiece, in a move that it said would open the door to a listing on the Frankfurt Stock Exchange.
Trading in its shares is expected to start on Nov. 11.
"We aim to expand our international footprint and invest in innovation in order to offer clients around the world even better solutions," Hella Chief Executive Rolf Breidenbach said in a statement.
In addition, there are plans for a further private placement of up to 5.75 million shares from the holdings of family shareholders, Hella said, adding that the company would remain majority controlled by the current owners.
The family is to retain control of 85 percent of Hella shares in the short term and 60 percent through at least 2024, Hella said.
Bankhaus Lampe and Citigroup have been mandated to manage the flotation and the accompanying private placements as joint global coordinators and joint bookrunners.
In June, Reuters reported that Hella was considering listing its shares on the stock market.
($1 = 0.7957 euro) (Reporting by Edward Taylor; Editing by Maria Sheahan)