A unit of Sinopec has sold 8.5 million Hong Kong-listed shares in Chinese battery giant CATL for about US$770 million, according to a term sheet released on Wednesday. The move allows Sinopec to capitalise on CATL’s strong stock market performance.
The shares were sold through an accelerated bookbuild at HK$708 each, representing a discount of about 3.8% from CATL’s Tuesday closing price of HK$736. Goldman Sachs acted as the sole placing agent for the transaction.
Following the sale, Sinopec (Hong Kong) also agreed to a 90-day lock-up period on its remaining CATL stake. Based on market data, Sinopec previously held about a 9.45% stake in CATL’s Hong Kong share capital. The 8.5 million shares sold account for around 5.5% of CATL’s Hong Kong-listed shares in issue.
The selldown comes after CATL’s Hong Kong-listed stock nearly tripled from its May 2025 listing price of HK$263. Shares have also risen 46.9% so far this year, giving the company a market capitalisation of around US$304 billion.
CATL is one of the world’s largest electric vehicle battery manufacturers, supplying major automakers such as Tesla, BMW, Volkswagen, Xiaomi and Nio.
The company raised about US$4.6 billion in its Hong Kong listing, the largest IPO globally that year, with most proceeds earmarked for a new battery plant in Hungary as part of its international expansion plans.
Earlier this year, CATL reported fourth-quarter and full-year 2025 profits that exceeded market expectations. Reuters also reported that the company is exploring another Hong Kong equity fundraising exercise that could raise around US$5 billion, although details remain under review.
