HONG KONG: Chinese electric vehicle (EV) battery giant Contemporary Amperex Technology Co. Limited (CATL) is set to raise US$4 billion through its secondary listing on the Hong Kong Stock Exchange, slated for May 20, 2025. This marks the largest IPO to be held in Hong Kong this year.
CATL, which produces over a third of all electric vehicle batteries worldwide, has cemented its position as a leader in the sector, partnering with automotive giants such as Tesla, Mercedes-Benz, BMW, and Volkswagen. The company, listed in Shenzhen, is pursuing a secondary listing in Hong Kong to further its international expansion and to tap into the growing demand for EV batteries, particularly in Europe.
In a filing with the Hong Kong Exchange, CATL outlined plans to offer approximately 117.9 million shares, priced at up to HK$263 per share, with a total expected value of HK$31.01 billion (US$4 billion). The IPO is expected to generate significant interest, with cornerstone investors including Sinopec and the Kuwait Investment Authority already committing to buy HK$2.62 billion worth of shares.
The funds raised from the IPO will be utilized to accelerate CATL’s international growth, particularly in Europe, where it is already constructing its second factory in Hungary. The company has been expanding rapidly on the continent, having launched its first factory in Germany in January 2023. In addition, CATL is working with automotive manufacturer Stellantis on a US$4.3 billion project to build an EV battery factory in Spain, with production slated to commence by 2026.
Despite challenges in the domestic Chinese market, which has faced a slowdown in EV sales and a fierce price war, CATL has posted robust performance. In the first quarter of 2025, the company reported a 32.9% increase in net profit, highlighting its resilience amid market pressure.
The IPO marks a significant moment for the Hong Kong Stock Exchange, which is eager to attract more major Chinese listings. The city has seen a steady decline in new offerings since China’s regulatory crackdown in 2020, which led some large companies to delay their IPO plans.
However, CATL’s IPO is not without controversy. The company was recently included on a US Department of Defense list as a “Chinese military company,” drawing attention from US lawmakers. In response, CATL has denied any involvement in military-related activities, and Beijing has decried the listing as a form of “suppression.” Despite this, major American investment banks, including JPMorgan and Bank of America, are still involved in the deal.
CATL plans to structure the IPO as a “Reg S” offering, meaning that it will not allow sales to US onshore investors, reducing the company’s exposure to legal risks in the United States.
As CATL looks to solidify its position in the global EV battery market, the Hong Kong IPO is seen as a critical step in its continued expansion and innovation in the rapidly growing electric vehicle sector. (AFP)
