The Al-Futtaim Family Office from Dubai has become a strategic investor in the Chinese electric vehicle maker BYD Co., which recently raised HK$43.5 billion (approximately $5.6 billion) in Hong Kong’s largest share sale in nearly four years. This significant investment comes as BYD sold 129.8 million shares, priced at HK$335.20 each, reflecting a 7.8% discount from the previous close in Hong Kong.

BYD’s share sale was oversubscribed, indicating strong demand, and the company plans to deepen its collaboration with the Al-Futtaim Family Office. According to BYD, the partnership will center around new energy vehicles, marking a strategic transition for both firms. The offering was also supported by long-only investors and sovereign-wealth funds, and was increased by 10% from an initial offering of 118 million shares.

This transaction is notable as it marks Hong Kong’s largest share sale since food-delivery company Meituan raised $10 billion in 2021. The offering has sparked optimism among dealmakers, suggesting a potential rebound in Chinese share sales after a prolonged downturn. BYD’s strong market performance is underscored by its sales of over 318 000 pure electric and hybrid passenger vehicles in the previous month, representing a remarkable year-on-year increase of 161%. Additionally, the company achieved a record in overseas sales, totaling 67 025 units.

The fresh capital raised will be used for expanding BYD’s overseas business, investing in research and development, and enhancing working capital. Citigroup analyst Jeff Chung expressed a positive outlook on this equity financing, noting that BYD is raising funds in Hong Kong due to the high costs associated with converting Chinese yuan into foreign currency.

As China’s top-selling auto brand, BYD is capitalizing on a 46% surge in its stock since January, contrasting sharply with Tesla Inc.’s 29% decline during the same period. The company is also focused on localizing production globally to mitigate tariff impacts on China-made electric vehicles. Analyst Joanna Chen from Bloomberg Intelligence highlighted that this investment could expedite BYD’s overseas factory construction, a pressing need given the increasing tariff risks.

BYD aims to boost total vehicle sales to as high as 6 million this year, positioning itself alongside major automakers like General Motors Co. To achieve this ambitious goal, the company is expanding into markets throughout Southeast Asia, Australia, Japan, and Latin America, developing factories and dealership networks. Stella Li, Executive Vice-President of BYD, indicated that the company is considering establishing a third factory in Europe, with a decision expected within the next 18 months. Furthermore, BYD is enhancing its production capacity domestically and constructing a large research and development center in Shenzhen, which recently standardized its advanced driver assistance technology across most of its vehicle models.