What Happened: The Chinese EV giant entered into a placement agreement on Mar. 3 to issue 129.8 million new H shares at HK$335.2 ($43.58) per share, according to a company announcement. The placement, representing approximately 4.46% of BYD’s total issued shares, is expected to generate net proceeds of approximately HK$43.38 billion ($5.64 billion).
The placement price represents a 7.8% discount to Monday’s closing price of HK$363.6 on the Hong Kong Stock Exchange.
Goldman Sachs, UBS, and CITIC Securities will serve as placing agents and capital markets intermediaries, while CMB International Capital will act as lead managers for the transaction.
“The company will continue to invest in research and development in the field of intelligentization to seize the critical opportunities in the next stage of new energy automobile industry,” BYD stated in the announcement. The company plans to use the proceeds to fund R&D, expand overseas operations, supplement working capital, and for general corporate purposes.
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The placement is subject to regulatory approvals, including listing permission from the Hong Kong Stock Exchange. BYD’s chairman Wang Chuan-fu, who owns a substantial stake in the company, has agreed to a 90-day lock-up period following the share issuance.
BYD has emphasized its commitment to advancing vehicle intelligence, introducing strategies like “Full Vehicle Intelligence” and “Intelligent Driving for All” while equipping all its models with advanced autonomous driving systems.
Price Action: BYD shares traded on the Hong Kong Stock Exchange declined, 7.21% to HK$337.40 ($43.39) as of 10:32 am local time.
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