BYD was outselling rivals in China early this year, and as competition in the region increases, the company is apparently looking to boost its cash flow.
On Friday after market close, BYD entered into a placing agreement to offer 50 million shares of the company’s stocks in Hong Kong, according to CNEVPost. With the shares priced at HK$276, BYD stands to gain HK$13.8 billion ($1.77 billion USD) from the transaction, once they have all been allocated.
Following commissions and other expenses, the Warren Buffett-backed BYD will gain roughly HK$13.744 billion, and the company plans to use the funding to replenish capital, repay debts with interest, general corporate uses as well as invest in future research and development.
NIO Surpasses BYD as Most Valuable Car Brand in China, Says Hurun Report https://t.co/JzGp1WcEzz
— TeslaNorth.com (@RealTeslaNorth) October 26, 2021
In March, BYD sold more cars than startup electric vehicle (EV) makers NIO and Xpeng Motors combined, though throughout the year newer, smaller car companies have begun to see their products take off.
NIO, Xpeng Motors and Li Auto saw their deliveries surge in September, despite an ongoing semiconductor chip shortage and even higher growth margins in China from global EV giants Tesla.
A report from earlier this month also showed that BYD’s talks with Apple about developing an autonomous car for the U.S. tech company have largely stalled.
Contributing Writer at TeslaNorth.com from California’s southeast Bay Area. Covers electric vehicles, space exploration, and all things tech. Loves a good cup of coffee, live music and puppies. Buying a Tesla? Click here to get 1,000 free Supercharging miles.