MKS sportsphoto taken on April 24, 2024 shows a new energy vehicle (NEV) assembly line of BYD, China's leading NEV manufacturer, at the plant of BYD in Zhengzhou, central China's Henan Province. Photo:Xinhua" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-03-04/52b58e2c-ae86-43b6-b15c-db6d4f6b2f3e.jpeg" />

This photo taken on April 24, 2024 shows a new energy vehicle (NEV) assembly line of BYD, China's leading NEV manufacturer, at the plant of BYD in Zhengzhou, central China's Henan Province. Photo:Xinhua

Chinese electric vehicle (EV) giant BYD said on Tuesday that it raised HK$43.5 billion ($5.6 billion) in a share sale, making it the largest share offering in the Hong Kong stock market in the past four years.

This transaction highlights the strong appeal of Chinese EV companies to global investors, who recognize their competitive edge and role in driving the global green transition, an industry veteran told the Global Times on Tuesday.

The company issued a total of 129.8 million new H shares in this placement at a price of HK$335.2 per share, representing a 7.8 percent discount to Monday's closing price on the Hong Kong Stock Exchange (HKEX). The price was set at the lower end of the marketed range.

The placed shares account for11.82 percent of the existing 1.098 billion issued H shares and about 4.46 percent of the total issued shares. After deducting commissions and estimated expenses, the net proceeds from the placement are expected to reach HK$43.38 billion.

According to an announcement published on the official website of the HKEX on Tuesday, the net proceeds from the placement will be used for BYD's research and development, overseas business expansion, working capital replenishment and general corporate purposes.

The transaction was the largest equity follow-on offering globally in the automotive sector in the past decade, Reuters reported, citing BYD.

The United Arab Emirates-based Al-Futtaim Family Office was a key investor in the share sale, and the two firms were planning on forming a strategic partnership, BYD said.

BYD's latest financial report showed that in the first three quarters of 2024, the company achieved total revenue of 502.25 billion yuan, representing year-on-year growth of 18.94 percent. Net profit attributable to shareholders reached 25.24 billion yuan, an 18.12 percent year-on-year increase.

The company's production has accelerated rapidly in recent years. It took the company nearly 15 years - from December 2008 to August 2023 - to manufacture its first 5 million new-energy vehicles (NEVs), while its next 5 million were produced in just 15 months, the Xinhua News Agency reported.

BYD's achievement reflects both the rapid growth of China's NEV sector and the country's proactive efforts to promote green and low-carbon development, according to media reports.

This transaction attracted lots of global investors, who have expressed their strong confidence in BYD's growth prospects, Cui Dongshu, secretary-general of the China Passenger Car Association, told the Global Times on Tuesday.

BYD is not alone in attracting global investors via the Hong Kong stock market.

On February 28, Chery Automobile officially submitted its listing application to the HKEX. As the only major domestic automaker that has not yet gone public, Chery's move quickly became a focal point in the industry.

Chery plans to use the funds raised from its Hong Kong IPO for developing different models and versions of passenger vehicles to further expand its product range, as well as expanding into overseas markets and executing its globalization strategy among other purposes, according to the China Automotive News.

More Chinese EV brands will seek overseas financing, further promoting the global expansion of Chinese brands and accelerating the transition to a greener and more sustainable future worldwide, Cui said.