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Chinese electric vehicle giant BYD has secured a staggering $5.59 billion through a primary share sale, marking Hong Kong’s most extensive offering in four years. Initially planning to sell 118 million shares, BYD expanded the deal to 129.8 million shares—yet despite this financial coup, the company’s Hong Kong-listed shares opened 8% lower, a reaction to the discounted sale price.
This isn’t just another stock offering—it’s the biggest equity follow-on sale in the global auto industry in a decade. A key player in the deal? The Al-Futtaim Family Office from the UAE has signaled interest in a strategic partnership with BYD. However, the details of its financial commitment remain under wraps. The Middle East may still be a small market for Chinese automakers. Still, BYD and its peers are aggressively pushing for a stronger foothold in the region.
Cementing its dominance, BYD became China’s top automaker in 2022 and continues its relentless expansion. In 2024 alone, the company sold 4 million vehicles, with 90% of those sales in China, where it controls over a third of the market for electric and plug-in hybrid cars.
The offering, priced at HK$335.20 ($43.11) per share, represented a 7.8% discount from Monday’s closing price. The funds will fuel BYD’s aggressive growth strategy, bolstering research and development, expanding international markets, and supporting its growing working capital needs. The automaker has set an ambitious target of 5 to 6 million global car sales by 2025, aiming to challenge industry heavyweights like General Motors and Stellantis.
BYD isn’t just producing more cars—it’s building an empire. As of September, its workforce had swelled to nearly 1 million employees, surpassing even industry titans like Toyota and Volkswagen. The company’s expansion strategy includes rapid international scaling, particularly in Brazil, which will be its largest overseas market in 2024.
BYD’s international push isn’t without hurdles. The company has introduced hybrid models in Europe to counter the 17% tariff imposed on its EVs. Meanwhile, sentiment toward tech and EV stocks has been cautiously optimistic in Hong Kong, helping drive momentum for BYD’s record-breaking sales.
Raising funds in Hong Kong gives BYD an edge. It eases the challenge of transferring RMB from China and secures capital for global expansion without bureaucratic roadblocks. Analysts at Citigroup have noted that this move will accelerate BYD’s international reach, solidifying its position as a true automotive powerhouse.
The share sale was led by Goldman Sachs, UBS, and CITIC Securities, signaling strong institutional backing as BYD shifts into high gear on the global stage.