BYD Co., a Shenzhen-based electric vehicle manufacturer backed by Warren Buffett, raised HK$29.9 billion (US$3.86 billion) from an upsized sale of its Hong Kong-listed shares, capitalizing on rising demand for new energy vehicles and a blistering stock rally. BYD agreed to sell 133 million shares at HK$225 each, representing a discount of 7.8 percent to Wednesday’s closing price of HK$244, according to a statement. The placed shares represent 14.54 percent of the company’s enlarged H-share base, the statement showed. BYD had previously planned to offer 121.1 million shares at HK$222-HK$228 each, according to terms of the deal. The offering comes after BYD’s shares have surged more than 400 percent in the last 12 months in Hong Kong, part of a broader rally in electric vehicle maker stocks buoyed by strong investor expectations for the industry’s growth. At US$3.86 billion, BYD’s primary share placement is the biggest in Hong Kong since Haitong Securities Co.’s US$4.2 billion share sale in 2014. BYD is the latest in a growing line of Chinese electric vehicle makers to tap capital markets for funding. Last year, domestic electric vehicle makers raised billions of dollars in share sales: Chinese rival Xpeng Inc. sold US$2.5 billion worth of new stock, while Nio Inc. fetched US$3.1 billion in December. Xpeng also signed an agreement with banks for a US$2 billion line of credit earlier this year. (SD-Agencies) |