WARREN Buffett-backed Chinese carmaker BYD will raise a less-than-expected 1.42bn yuan (£135m) in its initial public offering (IPO) in Shenzhen, weighed down by weak investor sentiment and worries over its poor performance.
BYD had priced the IPO at 18 yuan a share, it said in a statement to the Shenzhen Stock Exchange yesterday.
The company had initially aimed to raise 2.19bn yuan from the share sale.
At 18 yuan a share, the IPO valued BYD at 15.9 times consensus 2011 earnings forecasts and marked only a marginal 0.8 per cent premium to the company’s Hong Kong-listed shares.
BYD’s Hong Kong-listed shares were last traded at HK$21.50 a share.
BYD was selling up to 79m shares with proceeds used to fund its lithium ion project, add to research and development and expand its product range.