CATL applies to sell stock in Hong Kong, in what could be city’s largest IPO since 2021

Name: ‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market
Uploaded: 2025-02-11T13:10:39.000Z
Duration: 12 min 53 s
Description: ‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market

At US$5 billion, the speculated jumbo deal by the world’s largest EV battery maker would be the biggest since Kuaishou’s IPO in January 2021

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A CATL sign seen outside the company’s research and development hub in Ningde, Fujian province. Photo: Reuters

Daniel Renin Shanghai

Published: 9:10pm, 11 Feb 2025Updated: 12:00am, 12 Feb 2025

Contemporary Amperex Technology, the world’s largest producer of batteries for electric vehicles (EVs), is proceeding with a plan to list its shares in Hong Kong, in what could be the city’s biggest initial public offering (IPO) in more than four years.

CATL, as the Chinese company is known, submitted its application draft with the Hong Kong stock exchange on Tuesday, following the board’s approval in December. The IPO size and timeline were not disclosed. A US$5 billion deal, as reported by Reuters, would rank as the largest since Kuaishou Technology raised US$6.2 billion in January 2021.

BofA Securities, China International Capital Corporation (CICC), China Securities International and JPMorgan Chase were listed as joint sponsors, while Goldman Sachs, Morgan Stanley and UBS will also have an unspecified role in the deal, according to the draft.

CATL’s yuan-denominated shares fell 2.6 per cent to 251.80 yuan (US$34.50) in Shenzhen before the announcement, giving it a market value of 1.1 trillion yuan (US$150.5 billion). They have declined about 5 per cent this year, after a 68 per cent surge in 2024.

“CATL has ambitions of expanding its worldwide footprint since it can chase higher profitability outside mainland China,” said Davis Zhang, a senior executive at Suzhou Hazardtex, a supplier of specialised batteries.

“With production and technological advantages over their global rivals, Chinese EV players are often welcome in overseas markets to localise their research and manufacturing expertise.”

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‘Overtaking on a bend’: how China’s EV industry charged ahead to dominate the global market