Chinese electric vehicle maker BYD launches US$1.8 billion capital raising -term sheet
FILE PHOTO: BYD Co Ltd Chairman and President Wang Chuanfu speaks next to its hybrid electric car 'Qin' at BYD Dreamcast conference in Beijing, China, April 11, 2016. REUTERS/Kim Kyung-Hoon
HONG KONG : Chinese electric vehicle company BYD Co is raising up to US$1.8 billion in a capital raising launched on Friday, a term sheet seen by Reuters showed.
A price range to sell 50 million shares was set at between US$HK273.5 and US$279.5, which represents a 5.8per cent to 7.8per cent discount to the stock's closing price on Friday.
BYD Co is listed on the Hong Kong and Shenzen stock exchanges.
It said it would use the funds to increase its working capital, pay down debt and invest in research and development.
BYD announced on Thursday that it made a 1.27 billion yuan (US$198.54 million) net profit in the three months to Sept. 30, down from 1.75 billion a year earlier.
The company did not immediately respond to a request for comment sent outside normal business hours on Friday.
(Reporting by Scott Murdoch in Hong Kong; editing by Jason Neely)
