BYD Co., a Chinese car maker backed by Warren Buffett, raised $ 3.9 billion from stock sales, joining peers to take advantage of investors ’bullish about new energy vehicles.
The agreement marks BYD ‘s largest balancing fund since it listed in Hong Kong in 2002. The company, which also has stock trading in Shenzhen, manufactures electric cars, batteries, plug-in hybrids and fossil fuel power vehicles.
Investors ’commitment to green cars and advances in battery technology have soared the company’s stock, making it more attractive for BYD to raise new money. BYD stock in Hong Kong has more than quintupled in a year, giving it a market capitalization of $ 91 billion. That’s pretty much according to NIO Inc., a newer Chinese competitor, and compared to an $ 806 billion market cap for Tesla Inc., according to FactSet.
Other electric car makers have also funded equity markets for money as they race to get a bigger slice of the growing sector. Chinese competitor Xpeng Inc. built. in December $ 2.5 billion from an ongoing offer of American investment receipts, while NIO raised more than $ 4.5 billion in December and January by selling ADRs and convertible bonds.
A unit of Berkshire Hathaway Inc. Warren Buffett has been involved with BYD since 2008. Since June 2020, Berkshire has held 8.25% of BYD, or nearly 25% of its Hong Kong listed stock, according to a BYD half-year report.