BYD may delay A-share listing in Shenzhen to 2011
- Source: Gasgoo
- [16:50 December 08 2010]
- Comments
BYD Co., a leading Chinese electric car maker, may delay its planned A-share listing in Shenzhen to next year for "better timing" after stock markets fell, Bloomberg News reported yesterday.
BYD, based in southern Chinese boom town of Shenzhen, said in a statement to the Hong Kong exchange today that the company's board of directors requested a 12-month extension until Sept. 7, 2011, to prepare a listing. The Shareholders will vote on the proposal at a meeting on August 30.
"The domestic and global stock markets are not performing well, so we would like to have enough time to choose a better timing for the share sale," said a spokesman for BYD. Shares of BYD's Hong Kong-listed unit declined more than 30 percent from their highest level this year on April 7.
In July 2009, BYD announced its plans to issue up to 100 million Class A shares in the Shenzhen exchange. It aims to raise 2.85 billion yuan ($421 million) in the planned China share sale to fund lithium-battery and solar power-battery projects as well as vehicle businesses.
The company was the fastest-growing carmaker by sales in China last year, more than doubling deliveries to 448,397 vehicles. In the first half of this year, BYD vehicle sales grew 63.5 percent to 289,000 units.
BYD will sell its all-electric e6 cars in the U.S. later this year, following the domestic success of its gasoline-powered F3 car. U.S. billionaire Buffett's Berkshire Hathaway Inc. holds a 10 percent stake in BYD.
