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(Yicai Global) Jan. 21 -- China's BYD will raise HKD29.9 billion (USD3.9 billion) through private placement in Asia's biggest car equity financing over the past decade and Hong Kong's largest non-financial sector stock issuance ever. Its shares jumped.
The electric vehicle maker will issue 133 million shares, or almost 12.7 percent of its outstanding stock in Hong Kong after the issuance, for six investors, the Shenzhen-based firm said in a statement this morning, without disclosing the buyers' names. The price is HKD225 (USD29) apiece, around 7.8 percent lower than yesterday's closing price.
BYD's Hong Kong-listed shares [HKG: 01211] were 1.7 percent up at HKD248.2 this afternoon after rising as much as 6.8 percent earlier today. The equity price has jumped by more than five times over the past year. Its Shenzhen-listed ones [SHE: 002594] surged by 6.1 percent to CNY235.52 (USD36.50) today.
The share sale will help the company improve its financial structure and attract high-quality institutional investors to become its shareholders, it added.
The car manufacturer is looking to use the proceeds to supplement its working capital and repay interest-bearing debts, as well as to support its research and development efforts, per the announcement.
BYD will seize development opportunities to help new energy vehicles replace combustion engine cars, promote the industry's transition to smart vehicles, as well as boost its battery capacity, it said.
The electric vehicle maker will issue 133 million shares, or almost 12.7 percent of its outstanding stock in Hong Kong after the issuance, for six investors, the Shenzhen-based firm said in a statement this morning, without disclosing the buyers' names. The price is HKD225 (USD29) apiece, around 7.8 percent lower than yesterday's closing price.
BYD's Hong Kong-listed shares [HKG: 01211] were 1.7 percent up at HKD248.2 this afternoon after rising as much as 6.8 percent earlier today. The equity price has jumped by more than five times over the past year. Its Shenzhen-listed ones [SHE: 002594] surged by 6.1 percent to CNY235.52 (USD36.50) today.
The share sale will help the company improve its financial structure and attract high-quality institutional investors to become its shareholders, it added.
The car manufacturer is looking to use the proceeds to supplement its working capital and repay interest-bearing debts, as well as to support its research and development efforts, per the announcement.
BYD will seize development opportunities to help new energy vehicles replace combustion engine cars, promote the industry's transition to smart vehicles, as well as boost its battery capacity, it said.
BYD Gains After Raising USD3.9 Billion, Most for an Asian Carmaker in a Decade
www.yicaiglobal.com
