Friday, June 14, 2024

Chinese EV manufacturer BYD to be listed on Mexican Stock Exchange

Just three months after announcing its plans to build a factory in Mexico, Chinese electric vehicle manufacturer BYD has petitioned to enroll in the Mexican Stock Exchange or bolsa mexicana de valores (BMV).

BYD filed an application to list on the BMV’s Global Market, officially known as the International Quotation System (SIC), a platform that allows Mexican investors to buy shares on other stock exchanges globally. Under the Global Market model, shares of companies from all over the world, as well as exchange-traded funds (ETFs), are sold on the BMV.

BYD plant
In February, Chinese automaker BYD announced its plan to open an electric vehicle manufacturing plant in Mexico. (BYD)

An ETF offers investors in the BMV exposure to around 70 North American companies and trusts considered “direct beneficiaries” of the growing business trend of nearshoring. The first such fund offered by the BMV was launched in March.

Mexico City-based Casa de Bolsa Finamex will represent BYD for operations in the BMV’s Global Market. The move to access the BMV is a significant step for the Chinese car company as it seeks to expand its presence in Latin America. 

BYD vehicles entered Mexico’s market in 2022, and sales of Chinese cars in Mexico rose 63% year-on-year in 2023. In February 2024, BYD announced plans to open its first factory in Mexico. In May, BYD picked Mexico for the global debut of its first-ever pick-up truck model, the BYD Shark.

In its application to the BMV, BYD indicated that its shares would be traded on the BMV’s Global Market beginning Monday, June 10. It also stated that its initial float for the N series is 1.1 billion shares. 

The start price for BYD shares will be 230.6 Hong Kong dollars (about US $30 today), the price at which BYD shares were trading on the Hong Kong Stock exchange at the close of June 3. 

The Chinese EV manufacturer, based in the city of Shenzhen, made its initial public offering (IPO) on the Hong Kong Stock Exchange in July 2002.

With reports from Mexico Now, Debate and International Banker

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