BYD, a leading new energy vehicle (NEV) maker in China, is looking to raise up to HK$40.7 billion ($5.2 billion) through a primary placement in Hong Kong. According to a Bloomberg report, the company is offering 118 million shares at a price range of HK$333 to HK$345 per share, representing a discount of up to 8.4 percent from Monday’s closing price of HK$363.60.
The funds raised from this offering will be utilized for various purposes, including research and development, expanding overseas operations, replenishing working capital, and general corporate needs. This move comes as BYD aims to further strengthen its position in the NEV market and drive innovation in the industry.
BYD’s stock performance has been impressive this year, with the company’s market capitalization reaching RMB 1.05 trillion. The stock has seen a 40 percent increase in value since the beginning of the year, reflecting investors’ confidence in the company’s growth potential.
In 2024, BYD achieved significant milestones in NEV sales, with a total of 4,272,145 units sold, marking a 41.26 percent year-on-year growth. The company’s focus on passenger BEVs and PHEVs has also paid off, with sales figures showing positive trends in both categories.
Unlike previous strategies that relied on price cuts to drive sales, BYD recently unveiled its vehicle intelligence strategy, offering free smart driving features on affordable models. This move has been well-received by consumers, as evidenced by the rebound in NEV sales in February to 322,846 units.
Furthermore, BYD’s overseas sales have been setting new records, with 67,025 NEVs sold in February alone. This reflects a growing demand for BYD’s products in international markets and underscores the company’s global appeal.
Overall, BYD’s strong performance in the NEV sector, coupled with its strategic initiatives and innovative approach, positions the company for continued growth and success in the evolving automotive landscape. Investors and industry watchers will be closely monitoring BYD’s progress as it continues to expand its presence and drive innovation in the NEV market.
