CATL seeks Hong Kong listing, eyes global expansion

China’s battery giant aims to raise up to $8 billion through offshore H-share issuance and apply for a listing on the main board of the Hong Kong Stock Exchange, reinforcing global expansion amid intensifying competition.
Image: CATL

Contemporary Amperex Technology Co. Limited (CATL), the world’s largest lithium-ion battery producer, has announced plans to issue H-shares and list them on the Hong Kong Stock Exchange. The move marks a significant step in CATL’s internationalization strategy, aimed at expanding its global footprint and enhancing its access to international capital markets.

The company’s board has approved the proposal, which includes amendments to its company constitution to accommodate the listing. CATL, which has been listed on the Shenzhen Stock Exchange since June 2018 under the ticker 300750.SZ, will gain access to a second trading venue through the Hong Kong listing. According to the company’s announcement, the issuance and listing process is expected to be completed within the next 18 months, with analysts predicting the transaction will likely take place in 2025.

Under the proposed plan, CATL will issue H-shares representing no more than 5% of its total share capital post-issuance. The offer will also include an over-allotment option of up to 15% of the issued H-shares. As of January 24, 2025, CATL’s market capitalization on the Shenzhen Stock Exchange stood at approximately CNY 1.15 trillion ($160 billion). Based on this valuation, the H-share issuance is expected to raise at least CNY 57.5 billion ($8 billion), making it the largest fundraising event on the Hong Kong Stock Exchange in nearly 15 years.

The company has appointed Grant Thornton Hong Kong as the auditor for the listing, while investment banks including CICC, CITIC Securities, JPMorgan, and Bank of America are competing for lead underwriting roles. Market reports suggest that CATL initially offered a 0.2% underwriting fee, but some investment banks have reportedly proposed a lower rate of just 0.01% in a bid to secure the mandate.

CATL has been the world’s largest supplier of lithium-ion batteries since 2017. According to SNE Research, it has maintained the top position in global EV battery usage for seven consecutive years. In the first ten months of 2024, the company’s global EV battery market share stood at 36.8%, an increase of 0.9 percentage points year-on-year. In the energy storage sector, CATL has also been the leading global supplier since 2021, with its shipments accounting for 34.8% of the market in the first three quarters of 2024, according to ESCN.

Since 2023, CATL has been accelerating its overseas expansion. The company has committed more than CNY 100 billion ($14 billion) to three major battery manufacturing projects in Germany, Hungary, and Spain. At the same time, its revenue from overseas markets has seen a dramatic rise. In 2019, only 4.37% of CATL’s revenue came from outside China, but this figure surged to 32.67% in 2023 and stood at 30.3% in the first half of 2024.

On Tuesday, CATL released its 2024 earnings guidance, projecting total revenue of CNY 356-366 billion, marking a year-on-year decline of 8.71-11.2%. However, net profit attributable to shareholders is expected to reach CNY 49-53 billion, reflecting a growth of 11-20%.

With the electric vehicle and energy storage industries becoming increasingly competitive, CATL’s Hong Kong listing is expected to provide the company with additional financial flexibility to sustain its leadership position and continue its international expansion.

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