Chinese electric vehicle maker BYD has launched a sale of its Hong Kong shares to raise up to $5.2 billion via an accelerated book-building, according to a deal term sheet seen by Reuters on Monday.

The company has set a price range of HK$333-HK$345 per share for the offering, representing an up to 8.4% discount compared to the stock’s market closing price of HK$363.60 on Monday, the term sheet showed.

BYD did not immediately respond to a Reuters’ request for comment.

The company plans to use the proceeds to invest in research and development, expand overseas businesses, supplement its working capital, and for general corporate purposes, said the term sheet.

The deal adds to a sharp pickup this year in share offering momentum in Hong Kong, which is the preferred destination for Chinese companies looking to raise offshore capital, as investors bet on a possible recovery in China’s economic growth.

Shares of China’s largest bubble tea and drinks chain, Mixue Group, jumped more than 47% in their debut on the Hong Kong Stock Exchange on Monday, with new listings in the city recording their strongest start to a year since 2021.

The stellar start reinforces hopes for a strong year in new equity issuances by Chinese companies in Hong Kong, as Beijing steps up support for its private enterprises to revive a slowing economy amid heightened geopolitical tensions.

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