Autos & Transportation

Chinese electric vehicle maker BYD launches $1.8 bln 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, China, April 11, 2016. REUTERS/Kim Kyung-Hoon

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HONG KONG, Oct 29 (Reuters) - 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.

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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.

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

Our Standards: The Thomson Reuters Trust Principles.

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