Battery giant CATL aims to raise $4b in Hong Kong public stock listing

Contemporary Amperex Technology (CATL), the world’s leading battery manufacturer and a significant supplier of batteries to the stationary energy storage industry, has initiated a long-awaited Hong Kong Initial Public Offering (IPO) on Monday, May 12.

The listing, first initiated in February, aims to raise between US$4 billion and US$5.3 billion, with proceeds primarily designated to accelerate its global expansion, including in Europe. It should become the largest for the Hong Kong stock market in four years, since Kuaishou Technology’s $6.2 billion IPO.

CATL’s secondary listing in Hong Kong adds on to its existing Shenzhen A-share listing, providing more direct access to a broader international investor base and deeper global capital pools than the existing, more domestic share listing. This move facilitates foreign currency fundraising, crucial for financing its significant overseas expansion, notably the large-scale battery manufacturing plant in Debrecen, Hungary and other international projects.

Furthermore, the dual listing enhances CATL’s international profile, potentially improves share liquidity, and offers a strategic platform for valuation alignment with global industry peers.

A substantial portion of the funds will support CATL’s major battery manufacturing plant in Debrecen, Hungary. This facility, with a planned capacity of 100 GWh, is crucial for supplying key European automotive clients, including Mercedes-Benz, BMW, Stellantis, and Volkswagen, as the continent’s EV market continues to grow.

“To date, we have completed the initial preparations for the aforementioned project in Hungary and have commenced the construction. As of December 31, 2024, we had invested approximately EUR 0.7 billion. The total investment for Phase I and II of the project in Hungary is approximately EUR 4.9 billion, and the remaining funds will be invested successively in the future to complete the construction as planned,” CATL wrote in the original filing made in February.

The IPO, structured under Regulation S, restricts participation from US onshore investors. Trading of CATL’s Hong Kong shares is set to commence on May 20, 2025. The move signals strong investor confidence in the battery sector’s leading players, despite tariff uncertainties.

“In recent years, the contribution of our revenue generated from products that were directly exported to the US from China were relatively limited,” CATL said in its prospectus. “However, we cannot predict how tariff policies in various countries may further evolve or anticipate any potential impacts of subsequent developments in such policies on our business.”

CATL launched a new grid-scale product called the Tener Stack last week. The new product is a 9 MWh system featuring two 20-foot containers stacked vertically.