Two mainland-based rechargeable battery makers - BYD and Coslight Technology International Group - are planning to raise HK$1.3 billion and HK$73 million respectively in the local stock market. BYD, which says it is the world's fourth-largest maker of lithium-ion batteries, will offer 130 million new shares, or 25 per cent of its share capital, in a local listing. The shares will be priced between HK$9.45 and HK$12.20 per share. Although BYD is not state owned, it will issue the new shares in the form of H shares - a method usually adopted by state-owned enterprises in Hong Kong. China's company law imposes a three-year moratorium on domestic shareholders of an H-share transferring their shares after a Hong Kong listing. Domestic shareholders are also banned from trading shares in the open market. To get around the strict rules, many mainland enterprises list shares in Hong Kong through an overseas-domiciled vehicle. 'We are a company rooted in China, so we decided to list our shares in the form of H-shares. The arrangement also shows that we have no intention of cashing out,' BYD's president and largest shareholder Wang Chuanfu said yesterday. BYD saw its net profit jump 69 per cent last year to 210.48 million yuan (about HK$197.2 million), while sales increased by 49 per cent to 1.3 billion yuan. Mr Wang estimated net profit this year would more than double to 560 million yuan. Based on the profit estimate, the company's new shares are being offered at a prospective price-to-earnings ratio of between 8.77 and 11.32. Ninety per cent of the new shares will be offered by way of international placement, while 10 per cent will be reserved for the Hong Kong public offering. Gilbert Wong, managing director of listing sponsor BNP Paribas Peregrine, said the international placement tranche had already been fully subscribed. Mr Wang said the weakening US dollar would boost Shenzhen-based BYD's competitiveness over its major Japanese rivals. The company's SAR public offering will open today and dealing of the shares on the Stock Exchange of Hong Kong is scheduled to begin on July 31. Meanwhile, Harbin-based but SAR-listed Coslight Technology yesterday said it would place 35 million shares, or 8.79 per cent of the enlarged share capital, at HK$2.15 each. Coslight chairman Song Dianquan said the placement would raise net proceeds of HK$73 million to help expand its lithium-ion battery production.