(Bloomberg) — Long-term investors snapped up a significant chunk of BYD Co.’s $5.6 billion stock offering, people familiar with the matter said, a vote of confidence in the electric-vehicle maker and Chinese equities more broadly.
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“Long-only” funds alone received at least $1.5 billion worth of shares in the largest such sale in Hong Kong in nearly four years, the people said, asking not to be identified discussing private information. The involvement of such investors is typically welcomed as they can help anchor prices.
A representative for BYD didn’t immediately respond to a request for comment.
BYD sold 129.8 million shares at HK$335.20 each, a 7.8% discount to Monday’s close in Hong Kong. Al-Futtaim Family Office from the United Arab Emirates also participated in the share sale, the biggest in Hong Kong since food-delivery firm Meituan raised $10 billion in 2021.
BYD’s Hong Kong-listed shares have gained 27% this year even after the post-placement slump on Tuesday.
After three straight annual losses leading into 2024, Chinese stocks have been on a revival more recently, triggered in part by the emergence of DeepSeek’s latest artificial intelligence language model. The MSCI China Index has climbed 13% this year, while the S&P 500 is down 0.5%.
–With assistance from Danny Lee.
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