China battery large CATL’s Hong Kong itemizing plan gathers steam
by AFP Employees Writers
Hong Kong (AFP) Jan 14, 2025
Chinese language electrical automobile battery large CATL is pushing forward with plans to checklist in Hong Kong, with banks reportedly vying for a deal anticipated to lift at the very least $5 billion.
CATL, which produces greater than a 3rd of the EV batteries bought worldwide, stated it plans to “search an inventory on the Foremost Board of Hong Kong Inventory Trade” in a bid to broaden globally and assist power transition.
“This transfer is primarily geared toward creating a world financing platform to raised assist our international enterprise growth,” the agency informed AFP on Tuesday.
“We now have adequate money and funding for our total enterprise, and build up a world financing platform can be a strategic association, which is according to different globalised corporations.”
CATL is publicly traded in Shenzhen and its plans for a secondary itemizing in Hong Kong have been introduced in an alternate submitting final month.
Financial institution of America, JPMorgan Chase, China Worldwide Capital Company and CSC Monetary Company are poised to be the lead arrangers for the deal, Bloomberg Information reported this week.
Different banks are more likely to be added for an inventory that would occur as quickly as the primary half of this yr, which might increase at the very least $5 billion, in keeping with Bloomberg.
Based in 2011 within the japanese coastal Chinese language metropolis of Ningde, CATL has grown into the world’s largest EV battery maker and provides companies together with Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.
Final week, the US Division of Protection added CATL to an inventory of corporations it says are affiliated with Beijing’s navy.
China has denounced the transfer as “suppression” whereas CATL stated the corporate is “not engaged in any navy associated actions”.
CATL’s Shenzhen shares rose 3.8 % on Tuesday however have been nonetheless down practically 4 % for the reason that begin of the yr.
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 has suffered a gradual decline in new choices since a regulatory crackdown by Beijing beginning in 2020 led some Chinese language mega-companies to place their plans on maintain.
A bumper itemizing by Chinese language digital equipment maker Midea price $4 billion final yr could sign a turnaround, analysts say.
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