(Yicai Global) Jan. 21 -- BYD’s shares rose after the Chinese automaker said it raised HKD29.9 billion (USD3.9 billion) from a share sale in Hong Kong, the biggest equity financing for any car manufacturer in Asia over the past decade.

The electric vehicle maker’s shares [HKG: 1211] gained as much as 6.8 percent in Hong Kong today before closing 1.8 percent higher at HKD248.40 [USD32.05]. Its Shenzhen-listed stock [SHE: 002594] ended 6.1 percent up at CNY235.52 (USD36.45), after earlier jumping almost 8 percent.

BYD agreed to sell 133 million shares at HKD225 each to six unidentified investors, the Shenzhen-based company said in a statement earlier today. That is a discount of about 7.8 percent on yesterday’s closing price. The deal also represents the biggest-ever stock issue by a non-financial firm in Hong Kong.

The funds raised will help BYD, which is backed by Warren Buffett, to improve its financial structure and attract high-quality institutional investors as stakeholders, it said. The net proceeds will go to supplement working capital, repay interest-bearing debt, and support research and development.

BYD will seize development opportunities to replace combustion engine cars with new energy vehicles, promote the automotive industry’s transition to smart vehicles, as well as boost its battery capacity, it added. 

Shares of BYD and other Chinese electric automakers such as Nio [NYSE: NIO] and Xpeng Motors [NYSE: XPEV] soared last year.

Editor: Emmi Laine