Jul. 27, 2009 (China Knowledge) - BYD Co<1211>, which is China's largest rechargeable battery maker and a well-known automobile producer, aims to raise RMB 2.85 billion via a placement of not more than 100 million shares in an initial public offering on the Shenzhen Stock Exchange, Reuters reported on Friday.
The company Thursday said in a statement that it plans to issue A shares on the bourse in Shenzhen via a combination of placement through an offline offering to target investors and an online issue at a fixed price for subscription by funds.
The proceeds from the proposed A share issuance will be approximately RMB 2.85 billion, and will be invested in automobile research and development, the production of lithium ion batteries, the expansion of an automobile parts and accessories unit, and the second phase of a solar battery manufacturing project.
Shenzhen-based BYD said it would seek approval for the plan from shareholders on Sept. 8, according to the report.
The company was preparing for an A-share IPO in early 2008, but plans were shelved owing to the slump stock market last year.
In the first half of this year, BYD sold 176,795 vehicles, representing a significant growth of 176% from a year earlier, according to an earlier report from China Knowledge.