BYD raises $5.6 billion in Hong Kong share sale

Chinese electric vehicle (EV) manufacturer BYD raised $5.6 billion in a Hong Kong share sale, marking the largest equity offering in the city in four years. The company issued 129.8 million shares at HK$335.20 each, reflecting a 7.8% discount. The funds will be used to boost research and development, expand international operations, and support general corporate purposes. BYD, which became China’s largest automaker, has dominated the domestic market with over 90% of its 4 million vehicle sales last year, particularly in electric and plug-in hybrid models. The company now aims to sell 6 million vehicles in 2025, competing with global giants like General Motors.

To remain competitive, BYD has ramped up new vehicle launches, introducing 21 new electrified models in February alone. The company is also focusing on expanding its international presence, with Brazil serving as its largest overseas market. The share sale signals growing optimism in the tech sector in China and Hong Kong, following a summit led by President Xi Jinping, which was seen as a sign of greater government support for the sector.

Despite this optimism, BYD’s shares fell over 6% on the day of the share sale, reflecting the discount offered to investors. The decline also coincided with concerns about new tariffs on Chinese goods, as announced by former U.S. President Donald Trump. Nevertheless, the funds raised will help BYD enhance its global footprint, particularly in Europe and Southeast Asia. In addition, the participation of the Al-Futtaim Family Office, based in the UAE, suggests a potential strategic partnership to strengthen BYD’s position in the Middle East. The capital raise and the company’s ambitious growth plans reflect investor confidence in BYD’s potential to lead the global EV market.