Chinese Carmaker BYD Makes Top-Gear Debut in Shenzhen
The 46 percent jump in shares of BYD on its Shenzhen market debut surprised some analysts who had expected China’s sixth-biggest carmaker by sales to make a weak entry after it raised a third less than what it originally sought in the offering.
The company, in which Warren Buffett’s Berkshire Hathaway has a 9.9 percent stake, reported disappointing quarterly results on Wednesday, but it bucked bearish sentiment after raising $219 million in its initial public offering.
Analysts said investors were betting on the Shenzhen-based firm’s green technology.
“People are still quite optimistic on the prospect [of BYD’s battery business],” said Zhang Yu, an analyst with AJ Securities in Shanghai.
The shares rose to as high as 26.19 yuan ($4), compared with its IPO price of 18 yuan.
BYD’s Shenzhen debut comes at a time when a record number of IPOs are being postponed or canceled in Asia due to volatile global market conditions and as Chinese companies hog headlines in North America following accounting scandals.
BYD competes with rivals such as SAIC Motor, which has ventures with General Motors and Volkswagen.