BYD’s $5.6 Billion Share Offering Drawn Up by Long-Term Investors

In a move signaling strong confidence in the electric vehicle industry, BYD Co. (1211.HK) successfully raised $5.6 billion through a stock offering, attracting significant interest from long-term investors. According to sources familiar with the matter, this sale is a major vote of confidence in the company and the broader Chinese stock market.

Investor Interest in BYD’s Stock Offering

Long-term “buy-and-hold” funds alone secured more than $1.5 billion worth of shares in BYD’s largest share sale in Hong Kong in nearly four years. These investors play a critical role in stabilizing stock prices, offering a strong foundation for the company’s growth. Despite the 7.8% discount on the stock price compared to the previous trading day’s close, BYD’s Hong Kong-listed shares have surged by 27% this year, even after the minor post-placement dip.

Record-Breaking Sale in Hong Kong

BYD sold a total of 129.8 million shares at HK$335.20 each, marking the largest stock sale in Hong Kong since 2021 when Meituan raised $10 billion. The sale also saw participation from the Al-Futtaim Family Office, based in the United Arab Emirates.

Positive Outlook for Chinese Stocks and Electric Vehicle Industry

This successful share sale comes amid a rebound in Chinese stocks following three consecutive years of losses. Investors are increasingly optimistic about the future of Chinese equities, with the MSCI China Index climbing by 13% this year. This surge is also supported by the rise of innovative technologies like DeepSeek’s latest artificial intelligence language model.

BYD’s successful capital raise not only reinforces investor confidence in the company but also underscores the growing interest in Chinese electric vehicle manufacturers as the global market continues to shift toward sustainable energy solutions.