BYD raises billions on Hong Kong stock exchange
According to Reuters, this is the largest share sale of its kind on the Hong Kong stock exchange in four years. BYD said it had sold 129.8 million ordinary shares. The company had originally planned to sell only 118 million shares. The volume actually sold was around ten per cent higher.
Although BYD was able to sell more shares than planned, the price was lower than the closing price on Monday. In the deal, each share was sold for 335.2 Hong Kong dollars (41.09 euros). At the close of trading on Monday, BYD shares were still worth 363.60 HK dollars (44.57 euros), making the sale a discount of 7.8 per cent.
No specific projects are mentioned that are to be financed with the share sale. Instead, the proceeds will be invested in general growth, for example in new production facilities. BYD plans to sell five to six million cars this year, which would make the company roughly the size of General Motors.
As part of the share sale, the Al-Futtaim Family Office based in the United Arab Emirates is said to have acquired a stake in BYD. Both sides had agreed a strategic partnership in advance. However, it is not known how much the family has invested or what shares it now holds in the Chinese manufacturer. It is only said that the Al-Futtaim Family Office was ‘an important investor’ in the share sale.
BYD sold 4.25 million cars in 2024, 1.76 million of which were purely electric cars. However, the Chinese market accounts for around 90 per cent of sales, with only ten per cent being sold outside of China. To this end, BYD has entered numerous European markets, among others, and also wants to increase its production presence – in order to avoid EU tariffs on imported electric cars from China. However, BYD is also active in other markets, for example with its own plant in Thailand or Uzbekistan.
BYD is listed on the stock exchange in Hong Kong and Shenzhen. According to Reuters, shares in Hong Kong have risen by 36.4 per cent so far this year, and the news agency also sees the current deal as evidence of the “increasingly positive sentiment in Hong Kong and China.” The BYD share price on the Shenzhen stock exchange has risen by 27.4 per cent so far in 2025.
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