SHENZHEN, China — BYD Company, the parent of hybrid-vehicle specialist BYD Auto, said it expects to raise more than $400 million through a new stock offering here to help fund an expansion of vehicle and battery production.
BYD Company, in which U.S. investor Warren Buffett's Berkshire Hathaway holds a stake of around 10 percent, is headquartered in Shenzhen. Analysts said a listing on the local stock exchange could make it easier to win government support for future projects. BYD stock is also listed on the Hong Kong exchange.
BYD said it plans to issue up to 100 million yuan-denominated shares on the Shenzhen exchange early next year. The proceeds will be used to increase production of lithium-ion batteries, expand its vehicle portfolio and help fund the second phase of a solar battery manufacturing program.
BYD spokesman Wang Jianjun said the company's investment in pure electric vehicles has totaled around $300 million since 2003, with mass production of EVs expected to start next year.
BYD displayed a pure electric crossover vehicle, the e6, powered by lithium-ion batteries of its own design, in January at the 2009 Detroit Auto Show.
Earlier this month, BYD confirmed it is seeking to invest at least $300 million to buy a bus-making company in central China, which will become its third manufacturing base in the country.
German carmaker Volkswagen AG has also said it plans to explore cooperation on batteries with BYD.
Inside Line says: Like many of its counterparts in China, BYD remains in rapid-expansion mode. — Vivian Jin, Correspondent
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