BYD Semiconductor agrees approximately CNY800 million follow-on financing
A separate June 2020 capital increase brought thirty strategic investment vehicles into BYD Semiconductor.
BYD Semiconductor agreed a further equity capital increase of approximately CNY800 million on 15 June 2020. Thirty investment vehicles subscribed under the transaction, including SK’s China subsidiary, Xiaomi- and Lenovo-associated funds, and Shenzhen Capital Group.
The June financing followed a separate CNY1.9 billion capital increase agreed in May. The new subscribers were to receive approximately 7.84% of the enlarged company, while BYD retained a controlling stake of about 72.30%.
The proceeds were allocated to working capital, asset purchases, hiring and research. BYD Semiconductor planned to use its strategic investors’ industry connections to expand third-party customers and strengthen its automotive semiconductor business.
Use of funds
Working capital
Asset purchases
Hiring
Research and development