Catenaa, Tuesday, March 04, 2025– Significant portion of China’s leading electric vehicle maker BYD $ 5.6 billion stock offering has been grabbed by long term investors, Bloomberg reported on Tuesday, displaying confidence in the company.
Quoting people familiar with the matter, the report said “Long-only” funds alone received at least $1.5 billion worth of shares in the largest such sale in Hong Kong in nearly four years.
The involvement of such investors is typically welcomed as they can help anchor prices.
Bloomberg’s calculation suggests that the company offered 118 million shares at HK$333 to HK$345 each.
However, BYD sold 129.8 million shares at HK$ 335.20 each, a 7.8% discount to Monday’s close in Hong Kong.
Al-Futtaim Family Office from the United Arab Emirates also participated in the share sale, the biggest in Hong Kong since food-delivery firm Meituan raised $10 billion in 2021.
BYD’s Hong Kong-listed shares have gained 27% this year even after the post-placement slump on Tuesday.
The Shenzhen-based automaker sold more than 318,000 pure electric and hybrid passenger vehicles last month — a 161% year-on-year surge. The company also notched another record month for overseas sales, which hit 67,025 units.
BYD aims to deliver 5 million to 6 million EVs and hybrids this year, up from 4.27 million in 2024.
After three straight annual losses leading into 2024, Chinese stocks have been on a revival more recently, triggered in part by the emergence of DeepSeek’s latest artificial intelligence language model.
The MSCI China Index has climbed 13% this year, while the S&P 500 is down 0.5%.
