Contemporary Amperex Technology Co., Limited (CATL), the world’s largest EV battery manufacturer, is set to raise nearly $4 billion through a secondary listing on the Hong Kong Stock Exchange.
This marks the biggest IPO in Hong Kong in 2025, and one of the largest since Kuaishou’s $6.2 billion debut in 2021.
Trading is expected to begin on May 20, 2025.
Key Offering Details
CATL will issue 117.9 million shares with a maximum offer price of HK$263 (about $33.80 USD). The split includes 8.84 million shares for the Hong Kong public and 109.05 million for global institutional investors.
The offering is priced at just 1.5% to 5% below CATL’s Shenzhen-listed shares, reflecting strong investor confidence and tighter pricing compared to previous major listings.
Massive Cornerstone Support
The IPO has attracted over $2.6 billion from cornerstone investors, including:
- Sinopec – $500 million
- Kuwait Investment Authority – $500 million
- Hillhouse Investment – $200 million
This level of institutional support highlights CATL’s dominant position in the EV battery sector and future growth prospects.
Use of Funds: Focus on Europe
CATL plans to use:
- 90% of the proceeds for its Hungary manufacturing plant, a critical part of its European expansion strategy
- 10% for working capital and corporate needs
The Hungary facility will help CATL strengthen its position in Europe amid intensifying global competition and supply chain realignments.
Why This Matters
CATL controls over one-third of the global EV battery market and supplies major automakers like Tesla, Mercedes-Benz, BMW, and Volkswagen. The listing comes at a time of rising U.S.-China trade tensions, but CATL’s limited U.S. exposure and global diversification provide a strategic cushion.
Investor demand has been extremely strong, with early orders reportedly covering the offer multiple times, making it a potential bellwether for capital markets in 2025.
Summary Table
| Detail | Information |
|---|---|
| Shares Offered | ~117.9 million |
| Max Offer Price | HK$263 (≈$33.8 USD) |
| Target Proceeds | HK$31.01 billion (≈$3.99–$4 billion) |
| Listing Date | May 20, 2025 |
| Cornerstone Investors | Sinopec, Kuwait Investment Authority, Hillhouse |
| Use of Proceeds | 90% Hungary plant, 10% corporate purposes |
| Discount to Mainland | 1.5%–5% |
Strategic Outlook
With this listing, CATL is reinforcing its position as a global EV battery leader and deepening its presence in Europe. The strong institutional backing and pricing strategy show high investor confidence despite geopolitical and economic uncertainties.
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