BYD DLCs Adjusted After Bonus, Capitalization, and Dividend Announcements
Summary:
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Corporate Actions Triggered: BYD is issuing 8 bonus shares and 12 capitalization shares for every 10 existing shares, along with a cash dividend of RMB3.974 per share. These entitlements will trade ex-entitlement on 10 June 2025.
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Adjustment Factor Introduced: A formula will adjust the closing price of BYD shares and the terms of related structured products (DLCs). The key formula is:
Rfactorₜ = ((S – OD) / S) × 1 / (1 + 0.8 + 1.2),
where S is the pre-ex-date share price and OD is the HK dollar equivalent of the RMB3.974 dividend. -
Effective Date: All adjustments will take effect on 10 June 2025, contingent on the entitlements being executed as announced. If any entitlement is not implemented, no adjustments will occur.
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Issuer’s Next Step: SG Issuer will release the final adjustment factor and adjusted closing price after the HKEX market close on 9 June 2025. Investors holding DLCs should await this update before trading.
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Investor Advisory: DLC holders are advised to exercise caution until all adjusted terms are published.