Buffett-Backed BYD Said to Fetch Less in IPO
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Warren Buffett-backed Chinese automaker BYD lowered its initial public offering to 1.4 billion yuan (about $219.4 million) Monday.
BYD plans to sell 79 million common Class A shares and sees an offering price of 18 yuan per share. The number is a 33 percent discount to the original IPO, according to filings.
The company plans this IPO for the southern Chinese city of Shenzen's stock exchange.
Proceeds from the IPO will be invested in a lithium-ion battery project, a research and development center, and an expansion of its product line, which require total investments of around 5.4 billion yuan.
Buffett has a 9.89 percent stake in the company, which he acquired in 2008 for $230 million.
Sales for BYD were 519,800 units in 2010, a 15.9 percent gain from 2009. BYD was targeting sales of 600,000 units in 2010.
BYD plans to sell 79 million common Class A shares and sees an offering price of 18 yuan per share. The number is a 33 percent discount to the original IPO, according to filings.
The company plans this IPO for the southern Chinese city of Shenzen's stock exchange.
Proceeds from the IPO will be invested in a lithium-ion battery project, a research and development center, and an expansion of its product line, which require total investments of around 5.4 billion yuan.
Buffett has a 9.89 percent stake in the company, which he acquired in 2008 for $230 million.
Sales for BYD were 519,800 units in 2010, a 15.9 percent gain from 2009. BYD was targeting sales of 600,000 units in 2010.
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