BYD, a leading new energy vehicle (NEV) maker, has recently announced a new share placement in Hong Kong to raise funds for its research and development efforts and the expansion of its overseas business. The company has entered into a share placement agreement with agents who will place the new shares with at least six institutional investors.
The placement is expected to raise HK$43.5 billion ($5.6 billion) through the issuance of 129,800,000 new H shares. After deducting commissions and estimated expenses, the net proceeds from the placement are estimated to be around HK$43.4 billion. The funds raised will be used for research and development, overseas business growth, working capital replenishment, and general corporate purposes.
The placing price of HK$335.2 per share represents a 7.8 percent discount to BYD’s closing price of HK$363.6 on March 3 and an 11.8 percent discount to the average closing price over the past 10 trading days. The new shares will account for approximately 11.82 percent of BYD’s total H shares and about 4.46 percent of the total number of shares in issue.
BYD stated that the share placement aims to leverage the company’s technological capabilities and accelerate its overseas expansion efforts. By attracting more institutional investors, BYD expects to enrich its shareholder base and strengthen its market position.
Earlier reports indicated that BYD planned to raise HK$40.7 billion by issuing 118 million shares at prices ranging from HK$333 to HK$345 per share. However, the latest announcement reveals a larger share offering and a higher amount of funds to be raised.
BYD’s stock has shown significant growth this year, with the company’s market capitalization surpassing RMB 1 trillion. As of the latest trading day, BYD’s market capitalization stood at RMB 1.05 trillion, with its Hong Kong-traded shares recording a 40 percent increase year-to-date.
The company’s strong performance and strategic fundraising initiatives reflect its commitment to innovation and expansion in the rapidly evolving NEV market. With a solid foundation and a focus on technological advancement, BYD is well-positioned to drive sustainable growth and continue leading the industry forward.
($1=HK$7.7775)
