DeHeng Law Offices, Reed Smith, JunHe and Cleary Gottlieb are advising China’s leading EV maker, BYD, to raise HKD43.5 billion (USD7.5 billion) in share sales, which would make it the largest fundraising project in the auto sector in a decade.
BYD entered into a placing agreement on 3 March this year to place 130 million H shares at HKD335.20. According to BYD’s filing to the HKEX, the company will apply to the exchange for listing and complete the China Securities Regulatory Commission filing.
DeHeng acted as BYD’s PRC law counsel, while Reed Smith advised the issuer on international law.
Underwriters for the transaction include Goldman Sachs, UBS, CITIC Securities and CMB International Capital. They were advised by JunHe’s partner, Yu Yongqiang, on PRC law.
Cleary Gottlieb’s team, led by partners Freeman Chen, Zhao Shuang, Zhang Miao and Zhang Biyuan, counselled the underwriters on international law.
According to BYD, the Al-Futtaim Group is a key investor in the share sale. The United Arab Emirates-based family office invests in automobile, financial services and real estate businesses.
BYD plans to use the funds raised for overseas business expansion, research and development, and to supplement working capital.
