CATL sees shares surge in Hong Kong debut

CATL, the world’s leading battery manufacturer, announced on Tuesday its listing on the main board of the Hong Kong Stock Exchange (HKEX). The global offering comprised more than 135 million shares, priced at HKD 263 per share, excluding the greenshoe option. The greenshoe mechanism allows underwriters to sell additional shares beyond the initial offering if investor demand exceeds expectations.

This made CATL the first A-share company listed on mainland China’s stock exchanges seeking a secondary listing in Hong Kong with a price cap for the issuance.

CATL’s HK IPO took only 128 days from kick-off to completion, with the zero discount to the A-share closing price on the day of setting price cap. On its first day of trading, the stock opened strong on its debut, with an opening price at HKD 296 per share, representing a 12.55% increase from the offering price.

This offering attracted a diverse range of investors from 15 countries and regions globally, including sovereign wealth funds, industrial capital, long-term institutions, insurance capital, and multi-strategy funds. The strong demand demonstrates not only confidence in CATL’s long-term value but also recognition of the vast market potential and commercial opportunities driven by zero-carbon technologies, the manufacturer said in a press release.

“CATL is not just a battery component manufacturer; we are a system solution provider and are committed to becoming a zero-carbon technology company,” said Robin Zeng, Chairman and CEO of CATL, at the listing ceremony. “This listing signifies our deeper integration into the global capital markets and marks a new milestone in our mission to drive the global zero-carbon economy.”

Part of the raised funds will be used for building a manufacturing facility in Hungary. Announced in 2022, CATL’s 100 GWh battery plant in Debrecan is the biggest greenfield investment in Hungary’s history and comes with a price tag of EUR 7.3 billion ($7.6 billion).

“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.

CATL was listed on the Shenzhen Stock Exchange in 2018 and has a market capitalisation of around $150 billion. The company has been the world’s largest supplier of lithium-ion batteries for electric vehicles and energy storage applications for eight consecutive years.

Last month, CATL reported robust first-quarter results for 2025, with net profit surging 32.85% year-on-year to CNY 13.96 billion ($1.9 billion) and total battery sales reaching 126 GWh, up 33% from a year earlier.

The company’s growth in both EV and energy storage sectors underpinned the Q1 performance. EV battery shipments rose 36% to 102 GWh, buoyed by the growing demand in China. Battery storage sales climbed 20% to 24 GWh, though around 60% of Q4 in-transit inventory was recognized as Q1 revenue.