Chinese Carmaker BYD Raises $1.78 Billion in Share Placement

(Bloomberg) --

Chinese car and battery maker BYD Co. raised about $1.78 billion in a share placement, a term sheet showed.

The Shenzhen-based company sold 50 million H-shares at HK$276 ($35.50) each, a 6.9% discount to its closing price on Friday, according to terms of the deal obtained by Bloomberg News Saturday. Bloomberg previously reported the pricing to be between HK$273.5 and HK$279.5.

The carmaker backed by Warren Buffett is the top gainer in the Hang Seng Index this month, rising 22%. It reported a 28% decline in net income for the September quarter from a year ago as the global chip shortage undermined its ability to meet surging demand for clean cars.

Proceeds will be used to supplement working capital, repay debt, and for research and development, according to the term sheet.

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