BYD Raises RM 24.7 Billion In Hong Kong’s Largest Share Sale In 4 Years
BYD states the additional capital raised will fund additional R&D and further expand its overseas operations.
Chinese EV giant BYD has recently successfully raised a whopping $5.59 billion (RM 24.7 billion) in a primary share sale. This marks the largest equity offering in Hong Kong since 2021, and is incidentally also the biggest automotive sector follow-on offering globally in the past decade.
Primarily driven by strong investor demand, the company expanded its initial offering from 118 million shares to 129.8 million shares. These newly-established shares were sold at HK$335.20 (RM 190.50) each, representing a 7.8% discount to Monday’s closing price of HK$363.60 (RM 206.60). Expectedly, BYD’s Hong Kong shares opened 8% lower on Tuesday following the announcement.
The UAE-based Al-Futtaim Family Office emerged as a key investor in this recent share sale, with BYD announcing plans to form a future strategic partnership with the family. This upcoming collaboration aligns closely with the broader trend of Chinese automakers targeting the Middle East for overseas expansion, although the region remains a relatively small auto market compared to China’s domestic market.
BYD’s Hong Kong-listed shares have risen 36.38% year-to-date, while its Shenzhen-listed stock has gained 27.4%. According to Citigroup analyst Jeff Chung, raising capital in Hong Kong will enable the Chinese automaker to accelerate its international expansion plans, while avoiding the restrictions and costs associated with transferring funds from the mainland.
The company has stated that it intends to use the proceeds from this share sale to fund research and development, expand overseas operations, supplement working capital, and for general corporate purposes. BYD is rapidly scaling up production facilities and workforce as it targets selling 5-6 million vehicles in 2025, which would place it on par with global automotive giants like General Motors and Stellantis.
Since 2022, BYD has rapidly risen to become China’s largest automaker through its competitive lineup of affordable new energy vehicles. The automaker had sold 4 million cars in 2024, with over 90% of sales occurring within China. In fact, the company currently accounts for more than one-third of all pure electric and plug-in hybrid sales in its home market.
Looking outside of China on the other hand, Brazil is BYD’s largest overseas market last year. 76,713 of its cars were registered over there last year, up 327.68% from 2023.
In Malaysia meanwhile, BYD still comfortably ranks first in the EV sales chart, with its 8,570 cars registered last year even seeing it sneak into 10th place on the best-selling automakers over here in 2024. The Chinese automaker currently has five models in its lineup: Dolphin, Atto 3, M6, Seal and Sealion, and has recently just introduced its new Denza sub-brand locally with the debut of its D9 premium people mover.
