Chinese electric vehicle manufacturer BYD has engaged in the widespread sale of company shares as part of its goal to raise $3.6 billion in capital funds. The Warren Buffet-backed firm took advantage of a steep stock rally, influenced by the emerging demand for new-energy vehicles.
According to the terms of the deal, BYD shares will be sold for a value ranging from HK$222 to HK$228 each. This price is effectively a 6.6% to 9% discount on the last closing price of HK$244.
This decision to sell shares on a widespread scale was made after BYD stocks skyrocketed by more than 400% in the last 12 months in Hong Kong.
BYD was not the only EV manufacturer to engage in a highly successful fundraising campaign as of late, however. Local rival Xpeng Inc sold in excess of $2.5 billion worth of new stock, while Nio Inc managed to raise $3.1 billion in December.
The demand for electric vehicles in China has surged in the last few months, with new electric vehicle sales rising by 9.8% in 2020 to 1.11 million units. This is a 58% year-on-year increase from 2019 when EV sales reached 206,000 units.
