The Chinese -Chinese BYD company announced on Tuesday that it raised 5.59 billion dollars by selling the basic stocks, the largest of its kind in Hong Kong four years ago.
The company sold 129.8 million basic shares, an increase of 118 million shares planned when the deal was launched on Monday. Despite the increase in size, Hong Kong’s BYD shares opened by 8 %, reflecting the discount that has been sold the shares.
The transaction is the largest follow -up offer to the global auto sector over the past decade. The office of the main investor family from the United Arab Emirates also showed an interest in forming a strategic partnership with the BYD, although the exact amount of investment is not disclosed.
While the Middle East remains a relatively small market compared to China, Chinese auto manufacturers, including byd, focused, increasingly on expanding their presence there.
BYD, which became the largest automotive company in China in 2022, increased its production of electric cars at reasonable prices. In 2024, the company’s sales amounted to 4 million cars, with more than 90 % of sales in China, where more than a third of the market leads electric cars and pure hybrid components.
The shares were priced at $ 335.20 Hong Kong ($ 43.11) each, which represents a 7.8 % discount on the closing price on Monday. The deal is the largest in Hong Kong since 2021, when Metan collected $ 6.9 billion. BYD plans to use returns from selling stocks to finance research and development, expand their international operations, and support working capital.
Global Auto Industry Company targets 5 to 6 million cars in 2025, aiming to compete with companies such as General Motors and Stellantis. BYD also accelerates its expansion, with nearly a million employees as of September, bypassing the workforce volumes in Toyota and Volkswagen.
The sale of BYD shares comes amid positive feelings in the market in Hong Kong and Chinese, especially in the technology sector. The company intensified its export efforts, as Brazil was the largest market abroad in 2024.
In Europe, BYD has introduced new hybrid models to compensate for the tariff by 17 % on its electric cars.
Citigroup analysts have indicated that Hong Kong funds will help BYD to accelerate its international expansion, as the company faces challenges in transferring RMB from China and obtaining the necessary approvals for spending on capital abroad. Goldman Sachs, UBS, and Citic Securities led stocks.
