Chinese electric vehicle maker BYD Co. is setting its ambitions high with the launch of its Hong Kong share sale, aiming to raise as much as HK$40.7 billion (approximately $5.2 billion) in what would mark the territory's largest offering since 2021. This bold move reflects BYD's strategy to capitalize on investor interest during what could be seen as a recovery phase for the Chinese economy.
On March 3, 2025, BYD made the announcement of its share sale via accelerated book-building, offering 118 million shares at prices between HK$333 and HK$345. This pricing strategy allows investors to secure shares at up to an 8.4% discount compared to BYD's last closing price of HK$363.60. According to Bloomberg News, this sale is the largest since Meituan's 2021 transaction, underscoring the growing momentum for equity issuances in Hong Kong.
"BYD aims to use the proceeds to invest in research and development, expand overseas businesses, supplement working capital, and for general purposes," as reported by Reuters. The funds raised from this initiative are expected to support the company’s aggressive expansion plans, including substantial investments across various sectors and markets.
The backdrop of this share sale is notable; the Hong Kong market has seen renewed activities as investors are betting on economic recovery signs within China. Recently, shares of Mixue Group, one of China’s largest bubble tea chains, surged over 47% during its debut on the Hong Kong Stock Exchange. Such enthusiastic market responses are creating optimism for additional new listings and equity offerings throughout the year.
The fundraising momentum appears to be timely, as BYD seems to be on the fast track. Earlier reports indicated plans for the company to expand its workforce significantly. Specifically, BYD plans to hire around 20,000 additional employees at its Zhengzhou site within the first quarter of 2025, heightening production capacity to meet the growing demands for electric vehicles globally.
Alongside domestic growth, BYD has also set its eyes on global expansion. The company is preparing to complete its $1 billion manufacturing plant situated in Indonesia by the end of 2025, which is expected to bolster production capabilities even more. Recently, BYD opened its very first electric vehicle plant within Southeast Asia, located in Thailand, valued at $490 million and boasting annual production capacity of 150,000 units.
The broader investment climate seems beneficial as the Chinese government has increased its support for private enterprises, aiming to invigorate economic activities amid various geopolitical tensions. A proactive approach toward supporting new initiatives and firms will likely aid not just BYD but many other companies aiming for similar trajectories this year.
This substantial share sale not only highlights BYD’s readiness to fuel its growth ambitions but emphasizes the rebound of the Hong Kong market as a favorable platform for Chinese firms to access offshore capital. Investors continue to watch the capital fundraising space closely, and BYD's moves are likely to position it as a strong contender for continued market share within the competitive EV arena.
BYD, having exceeded its global sales target with over 4 million units sold last year, is on the cusp of solidifying its status as not just the largest electric vehicle manufacturer in China but also as a key player on the international stage.