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According to the well-renowned auto maker BYD, the company is planning to raise 4.2 billion HKD through sales of H shares so as to invest in the new energy vehicle sector. In response, its A shares went up on May 26.
According to its fund-raising plan, BYD will release 122 million H shares, accounting for 13.32% of its total amount of H shares and 4.92% of its total stock issued. Each share will be priced at 35 HKD, 15% lower than its latest closing price, which stood at 41.15 HKD. Deducting its issuing costs, the company is expected to raise 4.2 billion HKD.
It is revealed that iron battery is BYD"s core technology and key parts in the new energy vehicle sector. The company believes that the fast growing green vehicle market is pushing itself to aim high even though its 1.6GWH iron battery may be able to satisfy market demands this year. To meet the rising demands, it has to improve its production capacity and make even greater investments in R&D of green vehicles and market promotion.
Since early 2014, BYD K9 electric buses have won orders from a number of overseas customers and domestic cities, including Nanjing, Tianjin, Dalian and Hangzhou, etc. More encouraging news is that its plug-in hybrid vehicle "Qin" in the private car sector sold 2,384 units in the first quarter while it received orders of over 6,000 units. Thanks to the fact that several big cities in China have broken their local protectionism and rolled out subsidizing plans for green vehicles, BYD has been constantly expanding its market share in plug-in hybrid vehicle market.