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yesterday

CATL Shares Surge 13% in Landmark $4.6 Billion Hong Kong IPO

The world's largest EV battery maker debuts strongly on HKEX, raising funds for European expansion while navigating U.S.-China trade tensions.

Robin Zeng, founder and chairman of Contemporary Amperex Technology Co. Ltd. (CATL), third right, strikes a gong as Paul Chan, Hong Kong's financial secretary, second right, and Bonnie Chan, chief executive officer of Hong Kong Exchanges & Clearing Ltd. (HKEX), right, applaud during the CATL listing ceremony at the Hong Kong Stock Exchange in Hong Kong, China, on Tuesday, May 20, 2025.
Robin Zeng, chairman of Contemporary Amperex Technology Co. (CATL), center right, strikes the gong at the listing ceremony in Hong Kong, Tuesday, May. 20, 2025. (AP Photo/Chan Long Hei)
Signage of Contemporary Amperex Technology Co. (CATL) is displayed on the digital screen at the listing ceremony in Hong Kong, Tuesday, May. 20, 2025. (AP Photo/Chan Long Hei)
Robin Zeng, chairman of Contemporary Amperex Technology Co. (CATL), center, shares a toast with guests at the listing ceremony in Hong Kong, Tuesday, May. 20, 2025. (AP Photo/Chan Long Hei)

Overview

  • CATL's Hong Kong IPO raised HK$35.7 billion (US$4.6 billion), marking the largest global listing of 2025 so far.
  • Shares opened at HK$296, a 12.5% premium over the IPO price of HK$263, and peaked at a 17% increase during trading.
  • Proceeds from the IPO will primarily fund a new battery factory in Hungary to support European automakers like BMW, Stellantis, and Volkswagen.
  • The company structured the IPO as a Reg S offering to exclude U.S. onshore investors, mitigating legal risks tied to its U.S. DoD 'Chinese military company' designation.
  • CATL retains its dominant position in the EV battery market with a 38% global share, supplying major automakers including Tesla and Mercedes-Benz.