BYD sees Hong Kong’s largest share rise in 4 years further proving its global dominance
China’s BYD has been on a roll these last few years, not only did it dethrone Tesla as the number 1 EV exporter a couple years ago, it also proved the superiority of its blade battery in terms of longevity and now has seen its shares rise a whopping USD5.59 billion (roughly RM24.7 billion) through share sales, the largest for Hong Kong in 4 years.
The company sold 129.8 million primary shares, surpassing the initial plan of 118 million shares. Despite the strong interest, BYD’s Hong Kong shares opened down 8 percent on Tuesday, reflecting the 7.8 percent discount at which the shares were sold, compared to the stock’s closing price of HK$363.6 (about RM207).
Moreover, the Hang Seng Index, where BYD is listed, also dipped by 1.5 percent on the same day. The company claimed that this transaction is the largest equity offering in the automotive industry globally in the past decade. A key investor in the share sale was the UAE-based Al-Futtaim Family Office, with both firms planning to form a strategic partnership.
BYD, which became China’s largest automaker in 2022, has been accelerating its expansion into international markets. The company sold 4 million vehicles in 2024, with more than 90 percent of those sales coming from China, where it dominates the market for pure electric and plug-in hybrid vehicles.
On top of that, BYD sold its shares at HK$335.20 (roughly RM191) each, which is a 7.8 percent discount from the previous day’s closing price. The shares were marketed at a price range of HK$333 (around RM189) to HK$345 (about RM196) per share in an accelerated book build process. This makes the share sale the largest of its kind in Hong Kong since 2021 when Meituan raised $6.9 billion (approximately RM30.4 billion).
BYD plans to use the funds for research and development, overseas expansion, and to supplement working capital. With plans to produce 5 to 6 million cars in 2025, on par with global giants like General Motors and Stellantis, BYD is also ramping up its production capacity and hiring more workers.
The brand is continuing to expand its global presence as in 2024, Brazil became its largest overseas market, while in Europe, BYD launched new hybrid models to offset the 17 percent tariff on its EVs in the region. A Citigroup analysis noted that raising funds offshore in Hong Kong would allow BYD to expedite its international business plans.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
