China’s leading new energy vehicle (NEV) manufacturer BYD plans to place 129,800,000 new shares on the Hong Kong stock market, as it looks to raise HKD43.5 billion (US$5.6 billion) to fund new product development and overseas expansion, according to an announcement by the Hong Kong Stock Exchange.
The share placement will involve at least six institutional investors and is expected to be the largest of its kind in Hong Kong in four years. The news took the market by surprise, sending the automaker’s share price plunging by almost 8% in the morning session, wiping off around HKD30bn of market capitalization before a slight recovery later in the day – as investors rebuked the diluting effects of the new share placing.
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BYD said it plans to expand its research and development (R&D) operations and step up its overseas expansion, as competition in its home market continues to intensify.
The company’s global sales surged by 41% to 4,272,145 vehicles in 2024, making it China’s largest vehicle manufacturing group. Its battery electric vehicle (BEV) sales rose by 12% to 1,764,992 units, while hybrid sales surged by 72% to 2,485,378 units and commercial vehicle sales jumped by 89% to 21,775 units. Meanwhile, its overseas sales surged by 72% to 417,204 units – accounting for just under 10% of global sales.
