Shanghai (ZXZC)- BYD Company Limited (BYD) announced on June 15 its subsidiary BYD Semiconductor Co.,Ltd. has introduced another 30 strategic investors, which will give it significant impetus to the process of becoming a publicly-listed company.

The investors agreed to make a capital increase of 799,999,999 yuan ($113,008,720) to BYD Semiconductor based on the latter’s valuation of 7.5 billion ($1,059,456,750) before investment, of which 32,021,077.24 yuan ($4,523,326) will be included in the subsidiary’s increased registered capital and 767,978,921.76 yuan ($108,485,394) will be included in the capital reserve, according to BYD’s announcement.

Upon completion of the capital increase, the investors will get a total of roughly 7.84% of the enlarged equity interest in BYD Semiconductor, and the latter will see its registered capital grow to 408,268,735.89 yuan ($57,672,410). 

BYD said it has waived the pre-emption right with regard to the capital increase.

(Photo source: BYD)

The semiconductor company will use the money raised from the capital increase in its principal businesses, including supplementing the working capital, purchasing assets, employing staff, conducting R&D as well as other uses approved by the investors. 

In late May, BYD's board of directors agreed the company and BYD Semiconductor to signed agreements with 14 investors, pursuant to which the investors will make a capital increase of 1.9 billion yuan ($268,395,710) in total to BYD Semiconductor based on the target company's valuation of 7.5 billion yuan ($1,059,456,750) before investment.

This  investment  is led  by  Sequoia  Capital  China  Fund,  CICC  Capital  and  SDIC  Fund. Among the investors, Himalaya Capital and SDIC Fund are also existing investors of BYD.

BYD claimed on April 14 it had completed the internal restructuring of its wholly-owned subsidiary Shenzhen BYD Microelectronics Co., Ltd. (BYD Microelectronics), whose company name was changed to BYD Semiconductor Co.,Ltd in Jan. 2020.

Amid the restructuring, the subsidiary obtained 100% stake in Ningbo BYD Semiconductor Co.,Ltd., and in Guangdong BYD Energy Conservation Technology Co.,Ltd., and acquired the intelligent photoelectricity, LED light source and LED application businesses of Huizhou BYD Industry Co.,Ltd.

Given the resource integration and cooperation for future businesses, BYD Semiconductor plans to continue to introduce such strategic investors as South Korea SK Group, Xiaomi Group, CMB International, Lenovo Group, CITICPE, Houan Fund, China Fortune-Tech Capital, SAIC Capital, BAIC Capital, Shenzhen Huaqiang, Shenzhen V&T, and Shenzhen Invt, etc.