Chinese electric vehicle maker BYD said its board of directors has terminated the spin-off and proposed initial public offering (IPO) of its semiconductor unit on the ChiNext board of the Shenzhen Stock Exchange, citing a restructuring plan, reports the South China Morning Post.
Shenzhen-based BYD said it scrapped the plan because it is considering additional investments to ramp up the capacity of a foundry project in eastern China’s Shandong provincial capital of Jinan, to benefit from rising demand in the booming industry of electric vehicles (EV), according to an exchange filing late on Tuesday.
The new investment is expected to have an impact on the unit’s assets and business structure, according to the filing by China’s largest maker of batteries and electric cars.