According to a term sheet reviewed by Reuters on Saturday, Chinese electric vehicle firm BYD Co has priced its shares at HK$276 each to raise $1.77 billion.
After the Hong Kong market closed on Friday, a sale for 50 million fresh shares was announced. A request for comment from BYD was not immediately returned.
The price was 6.9% lower than BYD’s closing price of HK$296.6 on Friday. It’s in the middle of the price range BYD predicted, between $HK273.5 and $279.5, representing a 5.8% -7.8% reduction.
When the acquisition was announced, the business, which is listed on the Hong Kong and Shenzhen stock markets, said it will use the funds to expand working capital, pay down debt, and invest in R&D.
BYD announced on Thursday that its net profit for the three months ending in September declined 27.5 percent to 1.27 billion yuan ($198.54 million), compared to 1.75 billion in the same quarter last year.
