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CATL lists in Hong Kong, with most of the raised funds to be used for a new factory in Hungary. (Photo: CATL)
China’s largest electric vehicle (EV) battery manufacturer, Contemporary Amperex Technology Co. Limited (CATL), was listed on the Hong Kong Stock Exchange on May 20, aiming to raise up to USD 5.3 billion. This could become the world’s largest IPO of the year. Most of the funds will be allocated to the company’s new plant in Hungary, further strengthening CATL’s global leadership in the clean energy sector.
Strong institutional demand ahead of listing
According to the company’s prospectus, CATL plans to offer 125.4 million shares to institutional investors and 10.16 million shares to retail investors, with a maximum offer price of HK$263 per share (about USD 33.6). Should market demand prove strong, CATL may exercise the Greenshoe Option to issue an additional 17.7 million shares, bringing the total fundraising to $5.3 billion.
At the listing press conference, CATL founder and chairman Zeng Yuqun emphasized, “The zero-carbon era belongs to everyone. When you purchase an electric vehicle, you are contributing to the zero-carbon era.”
CATL is already listed on the Shenzhen Stock Exchange’s ChiNext board, and this Hong Kong debut marks its secondary listing—where shares are traded on an exchange outside the company’s primary market.
Despite ongoing geopolitical and economic uncertainties, investor sentiment around the EV battery sector remains bullish. Ahead of the IPO, more than 20 major institutional investors subscribed to shares, including China’s state-owned Sinopec, the Kuwait Investment Authority (KIA), Hillhouse Capital, UBS, and the Royal Bank of Canada (RBC).
Karine Hirn, partner at Hong Kong-based asset manager East Capital Group, remarked that CATL is a “a true champion enabling the energy transition, a symbol of China’s success as a global green leader.”
The market is optimistic about the prospects of the EV battery industry, with up to 20 large investors subscribing to CATL in advance. (Photo: CATL)
Funding to boost European market and battery swap innovations
According to SNE Research, a South Korean battery industry analytics firm, CATL commands a global market share of 38%, over 20 percentage points ahead of second-place BYD. Its clients include top automakers such as Tesla, Volkswagen, Ford, and Mercedes-Benz.
CATL confirmed that a significant portion of the IPO proceeds will go toward its new plant in Hungary, which is already under construction and expected to begin production this year. The facility will supply batteries to BMW, Stellantis, Volkswagen, and other major European automakers.
In addition to expanding in Europe, CATL is also accelerating development of its plant in Indonesia, which is expected to have a total capacity of 15 GWh upon completion. Phase one is scheduled to begin production in March 2026. Batteries produced there will be exported to Europe and the U.S., though the company has not disclosed which companies have signed offtake agreements.
Just ahead of the IPO, CATL also unveiled a new battery swap solution in China. Vehicles can be lifted automatically at designated stations and have their batteries swapped without driver intervention. The company aims to build 1,000 such large-scale battery swap stations nationwide.
Earlier in April, CATL launched a new fast-charging battery capable of reaching full charge in under five minutes with a range of 520 kilometers—positioning itself in direct competition with BYD’s latest offerings.
Source: Nikkei Asia(1), (2), Bloomberg, Reuters, Jakarta Post
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