Benzinga | Oct 29, 2021 02:16PM EDT

Warren Buffett Backed BYD Raises $1.8B Via Equity Offering At Discount, Shares Drop

* Chinese electric vehicle company BYD Co Ltd (OTC: BYDDF) (OTC: BYDDY) backed by billionaire investor Warren Bufffett has raised $1.8 billion in capital, Reuters reports.

* BYD sold 50 million shares for $HK273.5 - $279.5, implying a 5.8% - 7.8% discount on BYD's Friday closing price.

* BYD would use the funds to increase its working capital, pay down debt and invest in research and development.

* BYD made a CNY 1.27 billion ($198.54 million) net profit in the quarter ended September 30, down from CY 1.75 billion a year earlier.

* Price Action: BYDDF shares traded lower by 4.01% at $36.09 on the last check Friday.