China's BYD raises $5.59 billion in share sale, Hong Kong's largest in 4 years

Chinese electric vehicle maker BYD has raised $5.59 billion in a primary share sale that was increased in size, according to a term sheet seen by Reuters on Tuesday, the largest of its kind in Hong Kong in four years.

The company sold 129.8 million primary shares in the deal, the term sheet showed, up from the original 118 million shares planned when the deal launched on Monday.

BYD did not immediately respond to a request for comment sent outside of normal business hours.

BYD sold the shares at HK$335.20 each, a 7.8% discount to the stock's closing price of HK$363.6 on Monday.

The shares were sold in a price range of HK$333 to HK$345 per share each in the accelerated book build.

BYD's share sale is the largest of its kind in Hong Kong since 2021 when Meituan raised $6.9 billion, according to LSEG data.

The deal came as sentiment in Hong Kong and China turns increasingly positive, especially in the tech sector following a high level summit of tech executives led by Chinese President Xi Jinping. China policy makers have also signalled a higher level of support for the country's business private sector.

BYD's Hong Kong shares have risen 36.38% year to date while its Shenzhen-listed listed stock has rallied 27.4% on the back of the improved tech sector sentiment.

The company plans to use the proceeds to invest in research and development, expand overseas businesses, supplement working capital, and for general purposes.

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