China Knowledge reported that BYD Co Ltd China largest rechargeable batteries maker as well as automobile producer initial public offering in Shenzhen attracted CNY 27 billion subscription.

The automaker said in statement that its online tranche of the IPO which attracted CNY 25.68 billion was 22 times oversubscribed. The offline tranche of the offering froze CNY 1.31 billion and was 4.9 times oversubscribed.

The Hong Kong listed company on Sunday set the price for the Shenzhen IPO at CNY 18 which was 20.47 times the 2010 diluted earnings per share.

BYD issued 79 million new shares in the IPO of which 64 million were issued to individual investors and 15 million were issued offline.

The company said that it will use the proceeds from the deal to fund a lithium battery production project and the establishment of a researching and manufacturing centre in Shenzhen and expand it auto and auto part projects. Total investment will be about CNY 5.38 billion.

(Sourced from China Knowledge)