Chinese language EV battery big CATL goals to lift $4 bn in Hong Kong IPO
by AFP Employees Writers
Hong Kong (AFP) Might 12, 2025
Chinese language EV battery big CATL goals to lift $4 billion in its Hong Kong itemizing scheduled for Might 20, stated an announcement filed to the bourse Monday, making it the most important IPO anticipated within the metropolis thus far this 12 months.
A world chief within the sector, CATL produces greater than a 3rd of all electrical automobile (EV) batteries offered worldwide, working with main manufacturers together with Tesla, Mercedes-Benz, BMW and Volkswagen.
The corporate is already listed in Shenzhen, and its plan for a secondary itemizing in Hong Kong was introduced in a December submitting with the inventory alternate.
Based on a prospectus filed Monday, CATL will supply roughly 117.9 million items priced at as much as HK$263 per share ($33.8) for whole anticipated proceeds of HK$31.01 billion.
The itemizing is about to happen subsequent Tuesday (Might 20).
Cornerstone buyers, together with Sinopec and Kuwait Funding Authority, agreed to purchase shares value HK$2.62 billion, the prospectus exhibits.
Based in 2011 within the japanese Chinese language metropolis of Ningde, Modern Amperex Know-how Co., Restricted (CATL) was initially propelled to success by speedy development within the home market.
However the world’s largest EV market has extra lately begun to indicate indicators of flagging gross sales amid a broader slowdown in consumption.
The traits have fuelled a fierce value conflict in China’s expansive EV sector, placing smaller companies underneath enormous strain to compete whereas remaining financially viable.
However CATL continues to publish strong performances, with its internet revenue leaping 32.9 % within the first quarter.
Funds raised from a secondary itemizing may very well be used to speed up CATL’s abroad growth, significantly in Europe.
The battery big is constructing its second manufacturing unit on the continent in Hungary after launching its first in Germany in January 2023.
In December, CATL introduced that it might work with automotive big Stellantis on a $4.3 billion manufacturing unit to make EV batteries in Spain, with manufacturing slated to start by the tip of 2026.
– ‘Navy-linked firm’ –
Earlier analysts stated CATL’s float may very well be a blockbuster preliminary public providing that would increase Hong Kong’s fortunes as an inventory hub.
Hong Kong’s inventory alternate is raring for the return of big-name Chinese language listings in hopes of regaining its crown because the world’s high IPO venue.
The Chinese language finance hub noticed a gradual decline in new choices since Beijing’s regulatory crackdown beginning in 2020 led some Chinese language mega-companies to place their plans on maintain.
In an inventory issued in January by the US Protection Division, CATL was designated as a “Chinese language army firm”.
America Home Choose Committee on the Chinese language Communist Occasion highlighted this inclusion in letters to 2 American banks in April, urging them to withdraw from the IPO take care of the “Chinese language military-linked firm”.
However the two American banks — JPMorgan and Financial institution of America — are nonetheless on the deal.
Beijing has denounced the record as “suppression”, whereas CATL denied partaking “in any army associated actions”.
Based on Bloomberg, CATL plans to make the deal as a “Reg S” providing, which does not permit gross sales to US onshore buyers, limiting the corporate’s publicity to authorized dangers in america.
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