CATL Raise $4.5 Billion Through Its Listing on HKEX

Shenzhen-headquartered electric vehicle battery firm Contemporary Amperex Technology Co., Limited (CATL) has raised around $4.53 billion of net proceeds at $33.59 a share for the listing of H Shares.

The company had initially planned to raise approximately $4 billion, but increased the size of the offering due to higher-than-expected demand. About 90% of the capital raised is expected to be invested in the construction of a new factory in Hungary.

In a bourse filing with Hong Kong Stock Exchange (HKEX), the global offering comprised 135 million shares before the greenshoe option, at a price of $33.59 each, making CATL the first A-share company seeking a secondary listing in Hong Kong with a price cap for the issuance.

CATL’s IPO on the HKEX is the largest deal in the global IPO market so far this year. The previous record was held by Japan’s JX Advanced Metals, which raised $2.98 billion. In comparison, LG CNS, which had been the most anticipated IPO in the South Korean market this year, raised $820 million, ranking ninth globally.

CATL’s HK IPO took only 128 days from kick-off to completion, with the zero discount to the A-share closing price on the day of setting price cap. On its first day of trading, the stock opened strong on its debut, with an opening price at $37.81 per share, representing a 12.55% increase from the offering price.

The CATL shares, which also trade on the Shenzhen Stock Exchange, rose 16% in their Hong Kong debut on Tuesday and were up 8% on Wednesday.

This offering attracted a diverse range of investors from 15 countries and regions globally, including sovereign wealth funds, industrial capital, long-term institutions, insurance capital, and multi-strategy funds. The strong demand demonstrates not only confidence in CATL’s long-term value but also recognition of the vast market potential and commercial opportunities driven by zero-carbon technologies.

System Solution Provider

CATL CEO Dr Robin Zeng said that his company was not just a battery component manufacturer and they are a system solution provider and committed to becoming a zero-carbon technology company.

“This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy,” he added.

As global efforts to combat climate change, the zero-carbon economy has evolved from an environmental imperative into a dynamic engine of economic growth. Being a pioneer in advancing the zero-carbon economy, CATL is accelerating the development of a zero-carbon society through relentless innovation in zero-carbon technologies.

These advancements encompass key sectors such as Zero-Carbon Transportation, which requires annual investments to the tune of $3 trillion by 2030. The company produces more than a third of all EV batteries sold worldwide and supplies major carmakers including Tesla, Volkswagen and Toyota.

The company was founded in 2011 in the eastern Chinese city of Ningde and enjoyed rapid growth thanks to the boom in the country’s EV industry. It employs more than 100,000 people and has 13 production plants around the world.

CATL is currently building its second European factory in Hungary, after opening a plant in Germany in early 2023.