Shanghai (Gasgoo)- On March 4, BYD Company Limited announced a massive refinancing plan, revealing a share placement that is worth HK$43.509 billion in expected gross proceeds.
According to the announcement, BYD plans to issue 129.8 million H-shares to at least six placees, representing around 10.57% of the company's issued H shares and about 4.27% of its total issued shares.
The shares will be offered at HK$335.2 per share, a 7.8% discount to the previous closing price of HK$363.6 on March 3.
The gross proceeds from the placement are expected to total HK$43.509 billion, with net proceeds estimated at HK$43.383 billion. The funds will be used for R&D investment, overseas business expansion, working capital replenishment, and general corporate purposes.
This landmark financing move by BYD sets multiple records in both the global auto industry and the Hong Kong market. The company stated on its official website that the $5.6 billion H-share placement is:
● The largest equity refinancing deal in the global auto industry over the past decade
● The largest overnight share placement in the auto industry's history
● The second-largest overnight placement in Hong Kong market history
● The largest-ever overnight placement in Hong Kong's industrial sector
BYD announced the financing has drawn robust participation from global institutional heavyweights including sovereign wealth funds, long-term investors, and strategic partners from the Middle East.
Among the strategic investors in this deal is the Al-Futtaim family office from the UAE. Established in the 1930s, Al-Futtaim is one of the UAE's most prominent family-owned conglomerates, with diversified operations spanning automobiles, financial services, real estate, retail, and healthcare. The group has partnered with over 200 global brands across more than 20 countries in the Middle East and Southeast Asia.
