Chinese electric vehicle maker BYD is selling its Hong Kong shares to raise up to $5.2 billion through an accelerated book-building process, as per a deal term sheet seen by Reuters on Monday. The company has established a price range of HK$333-HK$345 per share for the offering, which is up to an 8.4 per cent discount from the stock's market closing price of HK$363.60 on Monday, as indicated in the term sheet. BYD did not provide an immediate response to a request for comment from Reuters. According to the term sheet, the company intends to utilise the funds for research and development, expanding international operations, bolstering working capital, and general corporate needs. The deal contributes to the increasing momentum of share offerings in Hong Kong this year, as Chinese companies seek to raise offshore capital in anticipation of a potential economic growth recovery in China. China's top bubble tea and drinks chain, Mixue Group, saw its shares surge over 47 per cent in their debut on the Hong Kong Stock Exchange on Monday, marking the strongest start for new listings in the city since 2021. The impressive beginning boosts expectations for a successful year in new stock offerings by Chinese firms in Hong Kong, as Beijing increases its backing for private businesses to stimulate a sluggish economy amidst escalating geopolitical tensions. Attribution: Reuters Subediting: M. S. Salama
