Chinese language EV battery large CATL goals to lift $4 bn in Hong Kong IPO
by AFP Workers Writers
Hong Kong (AFP) Might 12, 2025
Chinese language EV battery large CATL goals to lift $4 billion in its Hong Kong itemizing scheduled for Might 20, mentioned an announcement filed to the bourse Monday, making it the biggest IPO anticipated within the metropolis thus far this 12 months.
A worldwide chief within the sector, CATL produces greater than a 3rd of all electrical car (EV) batteries bought 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 models priced at as much as HK$263 per share ($33.8) for complete anticipated proceeds of HK$31.01 billion.
The itemizing is ready to happen subsequent Tuesday (Might 20).
Cornerstone traders, together with Sinopec and Kuwait Funding Authority, agreed to purchase shares price HK$2.62 billion, the prospectus exhibits.
Based in 2011 within the japanese Chinese language metropolis of Ningde, Up to date 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 not too long ago begun to indicate indicators of flagging gross sales amid a broader slowdown in consumption.
The developments have fuelled a fierce value conflict in China’s expansive EV sector, placing smaller corporations underneath large stress to compete whereas remaining financially viable.
However CATL continues to submit stable performances, with its internet revenue leaping 32.9 p.c within the first quarter.
Funds raised from a secondary itemizing might be used to speed up CATL’s abroad enlargement, notably in Europe.
The battery large is constructing its second manufacturing facility on the continent in Hungary after launching its first in Germany in January 2023.
In December, CATL introduced that it could work with automotive large Stellantis on a $4.3 billion manufacturing facility to make EV batteries in Spain, with manufacturing slated to start by the top of 2026.
– ‘Army-linked firm’ –
Earlier analysts mentioned CATL’s float might be a blockbuster preliminary public providing that might enhance Hong Kong’s fortunes as an inventory hub.
Hong Kong’s inventory alternate is keen 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 a listing issued in January by the US Protection Division, CATL was designated as a “Chinese language army firm”.
The US Home Choose Committee on the Chinese language Communist Celebration highlighted this inclusion in letters to 2 American banks in April, urging them to withdraw from the IPO cope with 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 checklist 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 traders, limiting the corporate’s publicity to authorized dangers in the US.
jug-twa/dhc
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