Athira Sethu
Kochi, 4 March 2025
Chinese electric car maker, BYD raised $5.59 billion in a share sale on Tuesday, the biggest of its type in Hong Kong in four years. The firm sold 129.8 million primary shares, up from the original 118 million shares that were to be sold. BYD’s Hong Kong shares opened down by 8% on Tuesday, as was to be expected, since the shares were offered at a discount.
This share sale is the biggest in the world’s auto industry in a decade, says BYD. Among the prominent investors in the deal was the United Arab Emirates’ Al-Futtaim Family Office, which intends to create a strategic alliance with BYD.
BYD has expanded swiftly to be China’s biggest automaker, with over 4 million vehicles sold in 2024, with over 90% of sales within China. It represents over a third of total sales of pure electric and plug-in hybrids in the world’s largest automotive market.
The shares were disposed of at HK$335.20 (about $43), a discount of 7.8% of the previous day’s price. This is the biggest share sale in Hong Kong since 2021, when Meituan sold $6.9 billion. The favourable market sentiment, particularly in China’s technology sector, has seen BYD shine. The company intends to utilize the funds raised to invest in research and development, diversifying its business outside of China, and for general purposes.
BYD plans to produce 5 to 6 million vehicles in 2025, rivalling world giants such as General Motors and Stellantis. BYD has been boosting output, employing additional staff, and broadening its factory base. BYD’s international expansion efforts include new model rollouts in regions such as Brazil and Europe.
In February, BYD rolled out 21 new electric and plug-in hybrid models with its smart driving system, God’s Eye, to remain competitive. The move by the company to raise funds in Hong Kong will accelerate its global expansion plans, particularly because remitting funds from China to other currencies is costly and complex. The deal was led by Goldman Sachs, UBS, and CITIC Securities.
