Chinese electric vehicle maker BYD launches $1.8 billion capital raising -term sheet

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BYD Co Ltd Chairman and President Wang Chuanfu speaks next to its hybrid electric car 'Qin' at BYD Dreamcast conference in Beijing

HONG KONG – Chinese electric vehicle company BYD Co is raising up to $1.8 billion in a capital raising launched on Friday, a term sheet seen by Reuters showed.

A price range to sell 50 million shares was set at between $HK273.5 and $279.5, which represents a 5.8% to 7.8% discount to the stock’s closing price on Friday.

BYD Co is listed on the Hong Kong and Shenzen stock exchanges.

It said it would use the funds to increase its working capital, pay down debt and invest in research and development.

BYD announced on Thursday that it made a 1.27 billion yuan ($198.54 million) net profit in the three months to Sept. 30, down from 1.75 billion a year earlier.

The company did not immediately respond to a request for comment sent outside normal business hours on Friday.

(Reporting by Scott Murdoch in Hong Kong; editing by Jason Neely)