HONG KONG: Chinese battery giant Contemporary Amperex Technology Co. Limited (CATL) marked a major milestone with its highly anticipated debut on the Hong Kong Stock Exchange on 20 May. The company’s IPO raised US$4.6 billion, making it the largest global IPO of the year to date.
On its first trading day, CATL shares surged by 16.42%, closing at HK$306.20, well above the offer price of HK$263. Initially targeting a US$4 billion raise, strong investor demand led to an upsized offering. Roughly 90% of the proceeds will be channelled into the construction of a new manufacturing facility in Hungary, reinforcing CATL’s ambitions to expand its European footprint.
The listing overtakes Japan’s JX Advanced Metals (US$2.98 billion) as the biggest IPO globally in 2025. In comparison, South Korea’s much-anticipated LG CNS IPO raised US$820 million.
CATL’s strong performance comes despite geopolitical headwinds, including rising U.S.-China tensions and U.S. Department of Defense sanctions. The Pentagon had in January listed CATL among Chinese firms alleged to support military modernisation. Additionally, CATL faced scrutiny from U.S. lawmakers, who urged JPMorgan and Bank of America to withdraw from the IPO.
In response, CATL utilised the Regulation S framework to exclude U.S. investors, ensuring regulatory compliance while bypassing U.S. securities disclosure requirements.
The successful listing underscores CATL’s continued dominance in the global battery supply chain and signals resilient investor appetite in strategic sectors, even amid a complex geopolitical backdrop.–BUSINESS KOREA
