BYD shares rally on plan to raise 15 billion yuan to expand battery output, invest in r&d
BYD Co. shares surged after unveiling plans to raise as much as 15 billion yuan ($2.42 billion) to expand battery output and develop vehicles.
The company's Shenzhen traded shares rose by the 10 percent daily trading limit to close at 83.6 yuan on Thursday. BYD's Hong Kong-traded stock climbed 8.8 percent to HK$59.3. Trading in the stock resumed after being suspended on May 22.
BYD, the electric-car maker backed by Berkshire Hathaway Inc., will offer as many as 261.3 million shares at a minimum of 57.40 yuan apiece, according to a statement to the Shenzhen stock exchange on Wednesday. The company will use part of the proceeds to expand its capacity to produce batteries for new-energy vehicles and for r&d, according to the statement.
The share sale will "allow the electric-car maker to repay debts, lowering its interest costs, and to increase spending on production and R&D," Steve Man, an autos analyst at Bloomberg Intelligence, said in a note.
The company is taking advantage of the rally in China's stock market to raise funds. Other automakers such as Lifan Industry Group Co. and Chongqing Changan Automobile Co. have also announced plans to sell shares.
BYD, the electric-car maker backed by Berkshire Hathaway Inc., will offer as many as 261.3 million shares at a minimum of 57.40 yuan apiece, according to a statement to the Shenzhen stock exchange on Wednesday. The company will use part of the proceeds to expand its capacity to produce batteries for new-energy vehicles and for r&d, according to the statement.
The share sale will "allow the electric-car maker to repay debts, lowering its interest costs, and to increase spending on production and R&D," Steve Man, an autos analyst at Bloomberg Intelligence, said in a note.
The company is taking advantage of the rally in China's stock market to raise funds. Other automakers such as Lifan Industry Group Co. and Chongqing Changan Automobile Co. have also announced plans to sell shares.
