BYD plans $219 mln share placement in Shenzhen
Beijing. June 20. INTERFAX-CHINA - BYD Co. Ltd. (BYD), a Hong Kong Stock Exchange-listed automobile and lithium ion battery manufacturer, plans to raise RMB 1.42 billion ($219.62 million) in an initial public offering (IPO) on the Shenzhen Stock Exchange on June 21, BYD announced June 20.
BYD will issue 79 million A-shares at RMB 18 ($2.78) apiece, according to the announcement.
Shenzhen City-based BYD will use RMB 1.14 billion ($176 million) for automobile research and development (RD), the announcement said.
Another RMB 652 million ($100.79 million will go towards expanding vehicle manufacturing, while the remaining RMB 400 million ($61.84 million) will fund lithium ion battery production, the announcement added.
Berkshire Hathaway Inc., a U.S. conglomerate owned by billionaire investor Warren Buffet, acquired a 10 percent stake in the company for $230 million in October 2008.
BYD's net profit last year plunged 33.48 percent on an annual basis to RMB 2.50 billion ($386 million) due to declining profit margins in its automobile division. Revenue rose 17.80 percent in the same period to RMB 48.44 billion ($7.48 billion).
BYD's earnings per share (EPS) are expected to surge from RMB 0.87 ($0.13) this year to RMB 1.45 ($0.22) in 2012 and RMB 1.70 ($0.26) by 2013, Shanghai Business Daily reported June 20, citing an Everbright Securities Co. Ltd. forecast.
China's largest automaker, Shanghai Automotive Industry Corp. (SAIC), reported EPS of RMB 0.48 ($0.07) for the first quarter of 2011.
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