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Chinese electric vehicle maker BYD, backed by Warren Buffett, to raise up to US$1.8 billion in Hong Kong share sale
- BYD plans to sell new shares in a range of HK$273.5 to HK$279.5 each
- Proceeds of sale would help fund working capital, research and development
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BYD, the Chinese battery and electric carmaker backed by Warren Buffett, is seeking to raise up to US$1.8 billion in a follow-up stock flotation in Hong Kong.
The Shenzhen-based electric vehicle maker aims to sell 50 million new shares in a price range of HK$273.5 (US$35.17) to HK$279.5 each, according to a term sheet seen by the South China Morning Post. That would represent a discount of 5.8 per cent to 7.8 per cent to the HK$296.60 closing price of its H-shares in Hong Kong on Friday.
The new shares would begin trading on November 1 and represent about 1.8 per cent of BYD’s market cap.
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BYD plans to use the proceeds from the sale to supplement its working capital, to repay debt, to invest in research and development and for general corporate purposes.
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The share sale comes a day after BYD reported that its net profit dropped 27.5 per cent to 1.27 billion yuan (US$199 million) in the third quarter. BYD’s shares fell 1.7 per cent on Friday following is earnings announcement the night before.
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