Chinese electric vehicle maker BYD announced on Tuesday that it had raised $5.59 billion in a primary share sale, marking the largest offering of its kind in Hong Kong since 2021. The deal, initially planned at 118 million shares, was expanded to 129.8 million shares due to investor demand.
BYD priced the shares at HK$335.20 ($43.11) each, representing a 7.8% discount to Monday’s closing price of HK$363.60. Following the sale, BYD’s Hong Kong-listed shares opened 8% lower on Tuesday, while the broader Hang Seng Index dropped 1.5%. The company said the transaction was the largest equity follow-on offering globally in the automotive sector in the past decade.
See also: BYD Considers Third European Plant Amid Tariffs on Chinese EV Imports
The United Arab Emirates-based Al-Futtaim Family Office was a key investor in the share sale, and BYD said the two firms were exploring a strategic partnership. “BYD has a lot of free cash flow and net cash domestically in China, but it’s not flexible and costs a lot to transmit the RMB from China into the currency outside China,” said Jeff Chung, an analyst at Citigroup, noting that raising funds offshore would support BYD’s international expansion.
BYD plans to use the proceeds to invest in research and development, expand overseas businesses, and supplement working capital. The automaker has been rapidly increasing production capacity and workforce as it targets sales of 5 million to 6 million vehicles in 2025, rivaling General Motors and Stellantis. In 2024, BYD delivered 4 million vehicles, with over 90% sold in China, where it commanded more than one-third of the market for electric and plug-in hybrid vehicles.
See also: JPMorgan Raises BYD’s 2026 Sales Forecast to 6.5 Million Units, Expects 30% Growth in 2025
The company has also been expanding its presence in overseas markets, with Brazil emerging as its largest international destination last year. In Europe, where BYD faces a 17% additional tariff on its EVs, the automaker has introduced hybrid models to remain competitive.
Goldman Sachs, UBS, and CITIC Securities led the share sale, which comes amid growing investor confidence in the Chinese tech and auto sectors following a high-level summit led by President Xi Jinping.
See also: BYD CEO: Chinese EVs Are 3-5 Years Ahead of Global Rivals
