Rechargeable battery manufacturer BYD in China plans to raise 15 billion yuan from an A-share placement to invest in Lithium-ion (Li-ion) batteries and new energy vehicles and repay loans, the Hong Kong and Shenzhen-listed firm announced on Thursday. The mainland company is the world’s largest supplier of rechargeable batteries and is also engaged in new energy, IT and automobiles. On Wednesday, BYD’s board of directors resolved that the company will issue up to 261 million new A-shares on the Shenzhen stock exchange, which will represent 9.55 per cent of the firm’s enlarged share capital, at 57.40 yuan per A-share, a 24.5 per cent discount to its last traded price of 76 yuan. BYD’s Shenzhen share price rose by the maximum daily limit of 10 per cent to 83.60 yuan by 10.20 am on Thursday, while its Hong Kong share price rose 8.44 per cent to HK$59.10. BYD’s A-shares were suspended on May 25 while BYD’s H-shares were suspended on May 26, and both shares are to resume trading on Thursday. The A-shares will be placed to a maximum of 10 investors, who may include securities companies, foreign institutional investors, trust investment companies and insurance institutional investors. “The A-shares issue will provide additional working capital, which may benefit the company in reducing financial risks and optimising its financial position. The A-shares issue may establish a stable and sustainable foundation for the company’s future growth,” said BYD. Of the 15 billion yuan of gross proceeds, 6 billion yuan will be invested in expanding production of Li-ion ferrous power batteries at Shenzhen BYD Lithium Battery, a Shenzhen subsidiary wholly owned by BYD, while 5 billion yuan will be invested in the research and development of new energy vehicles at BYD Auto Industry, also a wholly owned subsidiary of BYD, and 4 billion yuan will be used for working capital and to repay bank loans. The share placement is subject to shareholders’ approval at an extraordinary general meeting on July 21.