Carmaker BYD Seeks Piece of China?s Stock Rally With Share Offer June 3, 2015 ? 1:44 PM CEST Share on FacebookShare on Twitter Share on FacebookShare on Twitter Share on LinkedInShare on RedditShare on Google+E-mail
BYD Co., the Chinese electric-car maker backed by Warren Buffett, plans to raise as much as 15 billion yuan ($2.42 billion) in a private A-share placement.
The company said it 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 Wednesday. The shares closed at 76 yuan on May 22, before shares before trading was suspended pending an announcement.
BYD will use part of the proceeds to fund a battery project, and development of new-energy vehicles, according to the statement. The company is raising money from the stock market after fellow carmakers Lifan Industry Group Co. and Chongqing Changan Automobile Co. announced plans to sell a combined 11.2 billion yuan of shares.
BYD, which counts Buffett?s Berkshire Hathaway Inc. as a shareholder, is working with banks including China International Capital Corp., China Merchants Securities Co., Guosen Securities Co. and UBS Group AG on the plan, people familiar with the matter said late last month.
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