BYD to raise US$219m in China IPO
A 21.92
BYD, a Chinese auto maker in which billionaire investor Warren Buffett holds a stake, aims to raise as much as 1.42 billion yuan (US$219 million) through an initial public offering on China's Shenzhen stock market.
The Shenzhen-based company, which is already listed in Hong Kong, has set its IPO price at 18 yuan (US$2.77) a share, giving it a price-to-earnings ratio of 20.47.
According to a statement filed with the Shenzhen Stock Exchange on Sunday, BYD will issue up to 79 million shares in the offering. Investors can subscribe to the new shares starting Tuesday.
BYD will use the proceeds from the IPO to fund a lithium ion battery project, to increase research and development, and to expand its product line and auto parts production, the auto maker stated in its prospectus.
20 A 21.92
A 18 / 20.47
6 21 7900 1500
China's business press carried the story above on Monday.
