The shares sank 6.6 per cent in Hong Kong to HK$339.60 as of the noon trading break on Tuesday, knocking HK$26.4 billion (US$3.4 billion) from its market capitalisation. In Shenzhen, the firm’s A shares tumbled 4 per cent to 345.99 yuan, wiping off 25.8 billion yuan (US$3.54 billion) of value.
Shenzhen-based BYD announced on Tuesday that it planned to sell 129.8 million H shares to at least six outside parties at HK$335.20 each, a discount of 7.8 per cent from the closing price of HK$363.60 on Monday, according to a filing to the Hong Kong stock exchange. BYD said it planned to use the expected proceeds of HK$43.5 billion to invest in research and development, as well as to expand its overseas business.
The sale would be the biggest post-IPO fundraising by BYD since its listing in Hong Kong in 2002. In 2021, it raised HK$29.9 billion from a share placement.
The placement would also be the largest of its kind in Hong Kong in four years. Chinese food delivery giant Meituan raised US$10 billion in 2021 through a combination of a top-up placement and convertible bonds.
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