Working Capital and Growth: BYD Launches Primary Share Placement in Hong Kong
Working Capital and Business Expansion
China's largest electric vehicle maker BYD plans to raise up to HK$40.7 billion (US$5.05 billion) in a primary share placement to support its research and development efforts and overseas expansion, according to a term sheet seen by the South China Morning Post.
The company, which launched the book building for the offer on Monday evening, will issue 118 million shares at a price ranging from HK$333.00 to HK$345.00 per share. The offer price represents a discount of 5.1% to 8.4% to its closing share price of HK$363.60.
Significant Fundraising Milestone
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.
- Net proceeds are intended to invest in research and development.
- Expansion of overseas business is a key objective.
- This deal is facilitated by CLSA, Goldman Sachs, and UBS as joint placing agents.
More to follow...
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