Warren Buffett and Chinese carmaker BYD have raised 1.4 billion yuan, or $219 million, in their initial public offering in Shenzhen.
While seemingly impressive, the figure was below expectations. Investors were worried over how well the company would perform, and lacked confidence for the company. BYD had hoped to raise 2.19 billion yuan, or another $34 million.
Shares of BYD were priced at 18 yuan, while its Hong Kong shares were priced at $21.50 each. It did sell 79 million shares in its initial outing, however, amidst declining sales: 9% since May.
BYD originated as a battery producer but is now China’s 4th largest automaker, and has been developing its electric car for both mainland and global consumption. Warren Buffett has held a stake in the company since September 2008, and is still happy with the investment.