The corporate emblem of China’s automaker BYD is seen on a automotive exterior its headquarters in China’s southern metropolis of Shenzhen, Feb. 23, 2010.Reuters-Yonhap
China’s largest electrical car (EV) maker BYD plans to boost as much as HK$40.7 billion ($5.05 billion) in a major share placement to help its analysis and growth efforts and abroad enlargement, in accordance with a time period sheet seen by the Publish.
The corporate will difficulty 118 million shares at between HK$333.00 and HK$345.00 per share to buyers in a top-up inventory sale by a book-building train which was launched on Monday night. The provide worth represents a reduction of 5.1 to eight.4 % to its closing share worth of HK$363.60 on Monday.
That is the largest post-IPO fundraising by BYD since its itemizing in Hong Kong in 2002. In 2021, BYD raised HK$29.9 billion from a share placement.
„The online proceeds from the putting are supposed for use by the group to put money into analysis and growth, broaden abroad enterprise, complement its working capital and for common company objective,“ in accordance with the staff sheet.
CLSA, Goldman Sachs and UBS are the joint putting brokers for the deal.
BYD’s fundraising comes amid an ongoing worth warfare in mainland China’s EV sector that has eroded the earnings of all firms. In December, the Shenzhen-based carmaker slashed the worth of its Sealion 05 hybrid SUV by 11.5 % to 99,800 yuan ($13,701) to widen its buyer base on the mainland, the place the penetration of electrical vehicles crossed 50 % in July.
„All carmakers should strengthen their monetary muscle as a result of intense competitors,“ mentioned Ding Haifeng, a guide at Shanghai-based monetary advisory agency Integrity. „Main gamers like BYD additionally want to boost contemporary capital to cut back debt ranges and help enlargement.“
In January, Hong Kong-based consultancy GMT Analysis mentioned in a report that BYD’s reliance on financing from working capital had masked its excessive money owed. BYD’s true internet debt as of June 30, 2024, was greater than 323 billion yuan, in contrast with 27.7 billion yuan in its interim earnings report, in accordance with the consultancy.
BYD delivered 4.27 million pure electrical and plug-in hybrid autos in 2024, a rise of 41.3 % from a 12 months earlier. It additionally turned the mainland’s largest carmaker throughout EVs and standard vehicles final 12 months after overtaking Germany’s Volkswagen.
Within the first two months of 2025, BYD’s gross sales have jumped 92.5 % from a 12 months earlier to 623,384 models. The carmaker’s reductions have bolstered gross sales on the mainland, the place cutthroat competitors is predicted to result in the closure of extra underachieving EV assemblers this 12 months.
BYD reported a internet revenue of 25.2 billion yuan within the first three quarters of 2024, a rise of 18.1 % from a 12 months earlier. Income jumped 18.9 % to 502.2 billion yuan.
It was one in all solely three Chinese language EV makers to generate a revenue final 12 months, alongside Li Auto and Huawei Applied sciences-backed Aito.
Final month, BYD mentioned it could provide an autopilot system in almost all its vehicles at no additional value, with the intention of creating autonomous driving inexpensive for all mainland clients.
No less than 21 fashions – together with the Seagull hatchback priced from 69,800 yuan – will probably be fitted with its indigenous superior driver help system, which permits vehicles to navigate on highways and conduct self-parking.
Learn the total story at SCMP.
