Chinese automaker BYD launches $5.2 billion share sale to fund global expansion

Chinese electric vehicle manufacturer BYD has initiated a Hong Kong share sale aimed at raising up to $5.2 billion, according to a deal term sheet reviewed by Reuters on Monday.

The accelerated book-building process has set a price range of HK$333-HK$345 per share, representing an up to 8.4% discount from BYD’s closing price of HK$363.60. The offering is expected to be finalized later on Monday.

BYD intends to allocate the proceeds towards research and development, overseas expansion, working capital, and other general corporate purposes. The fundraising aligns with the company’s aggressive expansion strategy, which includes ramping up production and entering new international markets.

In line with this strategy, BYD has embarked on mass hiring, with plans to recruit 20,000 employees in Zhengzhou in early 2025, according to Henan Daily. The company is also constructing a $1 billion plant in Indonesia, expected to be operational by the end of 2025.

Additionally, BYD launched its first EV factory in Thailand this year, valued at $490 million, with a production capacity of 150,000 units annually.

The share sale comes amid a revival in Hong Kong's capital markets, as Chinese firms seek offshore funding in anticipation of economic recovery. Investor confidence has surged, with new equity issuances in Hong Kong off to their strongest start since 2021.

On Monday, Mixue Group, China’s largest bubble tea chain, saw its shares jump 47% on debut, reinforcing optimism for a strong year for IPOs and fundraising. Beijing’s pro-business policies and efforts to bolster private enterprises are expected to further drive momentum in equity markets.

BYD, which surpassed its global sales target with over four million EVs sold in 2024, remains at the forefront of China's EV revolution, solidifying its status as a key player in the global auto industry.