BYD raises up to US$5 bln in its biggest post-IPO funding for EV research, global growth

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 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 per cent to its closing share price of HK$363.60.

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.

“The net proceeds from the placing are intended to be used by the group to invest in research and development, expand overseas business, supplement its working capital and for general corporate purpose,” according to the team sheet.

CLSA, Goldman Sachs and UBS are the joint placing agents for the deal.

More to follow …