Editorial | Friendlier regulations help Hong Kong rise in IPO league table
City back in the running to reclaim crown as listing capital of the world, with mainland Chinese firms such as battery maker CATL leading the charge
In the decade through 2019, Hong Kong was on top of the world as the destination for initial public offerings (IPOs) seven times, regularly beating New York and other centres for the global capital raising crown.
In more recent years, though, the city has struggled to return to its IPO glory days, languishing in 13th place on the global league table as recently as last June.
Thankfully, there has been a reversal of fortune since. More companies started to list in the second half of the year. Then the stock exchange began seeking public feedback on relaxations to its listing rules to attract even more companies.
And now, the world’s largest battery maker is planning what is expected to be the biggest IPO in Hong Kong in more than four years.
Contemporary Amperex Technology (CATL), which produces more than a third of the world’s batteries for electric vehicles, submitted its application to the stock exchange last Tuesday.
CATL has not disclosed the IPO size or timeline, but reports say it is seeking US$5 billion or more, which would make it the biggest since Kuaishou Technology raised US$6.2 billion in 2021. The proceeds would fund construction of a battery factory in Hungary, working capital and other general corporate purposes, CATL said in its filing to Hong Kong Exchanges and Clearing (HKEX).