The corporate mentioned it bought 129.8 million main shares within the deal, up from the unique 118 million shares deliberate when the deal launched on Monday.
BYD’s Hong Kong shares opened down 8% on Tuesday, consistent with the low cost the inventory was bought at within the deal, whereas the Hold Seng Index was off 1.5%.
BYD mentioned the transaction was the most important fairness follow-on providing globally within the automotive sector prior to now decade.
The United Arab Emirates-based Al-Futtaim Household Workplace was a key investor within the share sale, and the 2 corporations had been planning on forming a strategic partnership, BYD mentioned. It didn’t say how a lot the household had invested.
BYD bought the shares at HK$335.20 every, a 7.8% low cost to the inventory’s closing worth of HK$363.6 on Monday.
Uncover the tales of your curiosity
The shares had been marketed in a worth vary of HK$333 to HK$345 per share every within the accelerated e-book construct. BYD’s share sale is the most important of its type in Hong Kong since 2021 when Meituan raised $6.9 billion, in keeping with LSEG information.
The deal displays more and more constructive sentiment in Hong Kong and China, particularly within the tech sector following a excessive stage summit of tech executives led by Chinese language President Xi Jinping. China coverage makers have additionally signalled a better stage of help for the nation’s enterprise personal sector.
BYD’s Hong Kong shares have risen 36.38% 12 months to this point whereas its Shenzhen-listed listed inventory has rallied 27.4% on the again of the improved tech sector sentiment.
The corporate plans to make use of the proceeds to put money into analysis and growth, broaden abroad companies, complement working capital, and for common functions.
A Citigroup evaluation mentioned BYD elevating the cash offshore in Hong Kong would enable the corporate to expedite its worldwide enterprise plans.
“BYD has numerous free money stream and web money domestically in China, nevertheless it’s not versatile and prices lots to transmit the RMB from China into the foreign money exterior China,” Citi analyst Jeff Chung wrote in a analysis notice.
The corporate can also be hampered by having to acquire common approvals whereas finishing up capital spending abroad, he mentioned.
Goldman Sachs, UBS and CITIC Securities led the BYD deal. (Reporting by Scott Murdoch in Sydney, extra reporting Donny Kwok in Hong Kong. Modifying by Edward Tobin, Lincoln Feast and Sonali Paul)