BYD raises up to US$5 bln in its biggest post-IPO funding for EV research, global growth
The carmaker will use the proceeds from the share placement for research and development and overseas expansion
The company will issue 118 million shares at between HK$333.00 and HK$345.00 per share to investors in a top-up stock sale through a book-building exercise which was launched on Monday evening. The offer price represents a discount of 5.1 to 8.4 per cent to its closing share price of HK$363.60 on Monday.
This is the biggest post-IPO fundraising by BYD since its listing in Hong Kong in 2002. In 2021, BYD raised HK$29.9 billion from a share placement.
“The net proceeds from the placing are intended to be used by the group to invest in research and development, expand overseas business, supplement its working capital and for general corporate purpose,” according to the team sheet.
CLSA, Goldman Sachs and UBS are the joint placing agents for the deal.
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BYD’s fundraising comes amid an ongoing price war in mainland China’s EV sector that has eroded the earnings of all companies. In December, the Shenzhen-based carmaker slashed the price of its Sealion 05 hybrid SUV by 11.5 per cent to 99,800 yuan (US$13,701) to widen its customer base on the mainland, where the penetration of electric cars crossed 50 per cent in July.